Page 2 - BE Theory Note

Breakeven Table

Once the selling price per unit, variable cost per unit and fixed costs have been

established, a table can be populated based on different levels of output.

For example;

Use the selling price, variable cost, and fixed costs to complete the table

In this example when 200 products are being produced the total cost = £20,000 AND
the total revenue = £20,000

Sales Revenue (£20,000) less Total Costs (£20,000) = £0

= BREAKEVEN POINT
(a profit is not being made, but neither is there a loss)

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