Break even graphs Flashcards
1
Q
How do you tell which line is the fixed costs?
A
the line that goes straight across and doesn’t go up or down.
2
Q
How do you tell which line is the total costs line?
A
the line that starts from the fixed costs line.
3
Q
How do you tell which line is the sales revenue line?
A
the line that starts from 0.
4
Q
How do you tell where the break even point on a graph is?
A
the point the total costs line and sales revenue line cross.
5
Q
How do you find the variable cost per unit from a graph?
A
(total cost at break even point - fixed costs = variable costs) / units
6
Q
How do you find the selling price per unit from a graph?
A
total revenue at break even point / break even units
