Technology

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 Analysis.

Your task is to prepare a worksheet that calculates the break even point

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 get?

The break-even point changes to 347 for the second part of the question. See if you agree.

 
 

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