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Chapter 3





            90
                     $000
                                                             Sales revenue

             80
                                                                                Total cost
                                                                        Profit

             70


            60
                               Breakeven point

            50

                                                                                        Variable costs

            40



             30
                         Loss


            20
                                                            Fixed costs


            10
                                                        Margin of safety


               0
                      200    400    600     800    1,000   1,200   1,400   1,600
                                                                                       Number of units























               64
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