Business (Break-even chart)

Gavin "shels"

Just wondering if someone could explain excactly how to do a break-even chart?

The book I'm using is Global Business and it doesn't really explain it well and well our business teacher shouldn't be a fecking teacher.

~Candy~

um ~

1) find the BE point

fixed cost

---

(divide)
selling price - variable cost (contribution per unit)


2) find the Toal cost at full capacity

fixed cost+ variable (10euro x 6000units say)


3) find the total sales at full capacity

selling price x no. of unit

...you 'd be able to draw your chart now,
a line from fixed cost
total sales line starts from (0,0) to woteva the figure is
total cost line from the piont from the fixed cost to whatever the figure is ..
then the point where them 2 meets is the breakeven point,draw a line down

that one should be the same as the number you got in 1)

then mark your margin of safety n profits at full capacity if they asked ..

umm...does it make more sense to ya no?


this is a good pic ..

Gavin "shels"

Thanks, I haven't read your post fully yet. I'll be giving one a try in a minute and I'll let you know.;)

Riotguy

We have that book too. Dire.

Gavin "shels"

Riotguy wrote: »

We have that book too. Dire.

Tis shocking, and our teacher just goes by whats in the that so-called book.

Brooke01

~Candy~ wrote: »

um ~

1) find the BE point

fixed cost

---

(divide)
selling price - variable cost (contribution per unit)


2) find the Toal cost at full capacity

fixed cost+ variable (10euro x 6000units say)


3) find the total sales at full capacity

selling price x no. of unit

...you 'd be able to draw your chart now,
a line from fixed cost
total sales line starts from (0,0) to woteva the figure is
total cost line from the piont from the fixed cost to whatever the figure is ..
then the point where them 2 meets is the breakeven point,draw a line down

that one should be the same as the number you got in 1)

then mark your margin of safety n profits at full capacity if they asked ..

umm...does it make more sense to ya no?


this is a good pic ..

Huge help thnx xoxo;):)

~Candy~

Gavin shels wrote: »

Thanks, I haven't read your post fully yet. I'll be giving one a try in a minute and I'll let you know.;)

k k :pac:

Brooke01 wrote: »

Huge help thnx xoxo;):)

no probz honey =P

saywhaat

we have that stupid book too, it sucks and our teacher expects us to know everything from it =O

MaltEagle

I don't it is that bad of a book. Isn't the worst, that's for sure. John O'Connor is a good writer.

gia82

can somebody please do me a chart if I give them the numbers so I understand,going crazy...

Crotchety

Are ye not finished school yet?


This is LC business. I thought it was all theory not graphs and numbers and accounts and all that crap.

christina_x

♫ wrote: »

Are ye not finished school yet?


This is LC business. I thought it was all theory not graphs and numbers and accounts and all that crap.

Theres on graph (the break even chart), no accounts, but there are a few ratios.

If you need help with business next year get the shortcut to sucess revison book, its great for this subject!