Calculating the break-even point – using a break-even chart
You can also calculate the break-even point by using a break-even chart.
To do this you will need to plot the total costs and total receipts against the number of units on a graph.
No of units
|
Varibale costs
|
Fixed costs |
Total costs |
Revenue |
| 0 | 0 | 1560 | 1560 | 0 |
| 200 | 180 | 1560 | 1740 | 700 |
| 400 | 360 | 1560 | 1920 | 1400 |
| 600 | 540 | 1560 | 2100 | 2100 |
| 800 | 720 | 1560 | 2280 | 2800 |
We can now plot this information lines on a graph.