Drawing Break even chart Flashcards

1
Q

How to draw a BE chart?

A
  1. Label x-axis with units and y-axis with dollars
  2. Calculate BEP(units) and BEP($) giving you the coords for your BEP
  3. Draw fixed costs (horizontal line)
  4. Draw sales revenue from origin and going through BEP
  5. Draw total cost from fixed cost and going through BEP
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