Calculate Break-Even Point
For this activity you will need to know the difference between
Fixed and Variable Costs. It is recommended that you
read about Break-Even
Your task is to prepare a worksheet that calculates the break
Click on the icon on the right to download the instructions.
If you have clicked on the link above you will have read that the
"Break-Event Point" can be calculated using a formula. In case you
missed it the formula is:
It is also possible to work out the "Break-Event Point" by plotting
Fixed Costs and Variable Costs on a graph. Click
here to download and example.
The answer for the first part of the question is 367. What do you
The break-even point changes to 347 for the second part of the
question. See if you agree.