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were now going to draw a breakeven chart here is some breaking information for a business you can see that theyre thinking about selling it no sales 100 sales 200 sales 300 and 400 first of all this business have worked out their fixed cost of 4,000 pounds no matter how many they make it will be four thousand pounds it doesnt change they have a variable cost which is ten pounds per unit so they sell none they can play any variable costs if they sell a hundred theyll pay a thousand two hundred times ten is two thousand etcetera etc and we just add those up to docHub our total cost of four thousand pounds if they make none 5,000 pounds of they make a hundred two hundred theyd have 6,000 pounds etc so weve worked out how much it costs them at each level of production were now going to see how much money they are going to earn so their sales revenue is how much they get them selling it and if they sell none they will get nothing if theyre selling at 30 pounds an item if they sell a
