Break-Even Analysis

$20,000

$17,500

$15,000

$12,500

$10,000 TFC
TVC
$7,500
TC
$5,000 Sales
Profit
$2,500

$0

($2,500)

($5,000)
0 400 800 1200 1600 2000 2400 2800 3200 3600 4000

Break-Even Point (units) = 2,000 Break-Even Point ($'s) = $10,000

Total Fixed Costs TFC = $3,000 Formulas:

Variable Cost per Unit VCU = $3.50 BEP (units) = TFC/(SPU-VCU)
Sales Price per Unit SPU = $5.00 BEP ($'s) = BEP (units) * SPU

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Unit Increment x-axis 400

Graph Data:
Total
Units TFC TVC TC Sales Profit
0 3000 0 3000 0 -3000
400 3000 1400 4400 2000 -2400
800 3000 2800 5800 4000 -1800
1200 3000 4200 7200 6000 -1200
1600 3000 5600 8600 8000 -600
2000 3000 7000 10000 10000 0
2400 3000 8400 11400 12000 600
2800 3000 9800 12800 14000 1200
3200 3000 11200 14200 16000 1800
3600 3000 12600 15600 18000 2400
4000 3000 14000 17000 20000 3000

© Copyright, 2003, Jaxworks, All Rights Reserved.

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