Constructing a break-even graph: Brian’s Burgers

Constructing a Break-Even Graph Sales revenue £ Total Costs Break-even Point Fixed Costs Output/Sales

Break-even table: based on a price of £200 per box of burgers Number of Units 40 60 80 100 120 140 160 Fixed Costs Variable Costs Total Costs Sales Revenue 5,000 5,000 5,000 5,000 5,000 5,000 5,000 6,000 9,000 12,000 15,000 18,000 21,000 24,000 11,000 14,000 17,000 20,000 23,000 26,000 29,000 8,000 12,000 16,000 20,000 24,000 28,000 32,000 Fixed costs are £5,000, the variable cost per unit is £150 per box of burgers.

Constructing a Break-Even Graph £ Revenue Sales revenue 35,000 Total Costs 30,000 25,000 Break-even Point Break even Point = 100 boxes of burgers 20,000 15,000 10,000 Fixed Costs 5,000 40 60 80 100 120 140 160 Number of boxes produced/sold

A fixed cost is a cost that does not vary with output True or false? A fixed cost is a cost that does not vary with output True

True or false? The money received from customers when they pay for goods is called sales revenue. True

An example of a variable cost is rent. True or false? An example of a variable cost is rent. False

Sales revenue is a business cost. True or false? Sales revenue is a business cost. False

True An example of a variable cost in Brian’s business is packaging. True or false? An example of a variable cost in Brian’s business is packaging. True

If you charge a low price, a customer will always buy your product. True or false? If you charge a low price, a customer will always buy your product. False