Page 3 - BE Theory Note

Breakeven Graph

You can then plot your table as a graph which visually can be easier to understand

• The breakeven point is where the Sales Revenue line and the

Total Costs line crosses
• Look down vertically and you can see that the no. products = 200

• Look horizontally and you can see that the sales revenue and costs both =

£20,000

Using a Formula

A quicker way to calculate the breakeven point is using a formula. If you know the
fixed costs, selling price per unit and variable cost per unit a simple formula can be

used

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