Breakeven Assignment

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Breakeven Analysis

Total Fixed Costs (TFC): $7,500

Price (P): $2.54

Variable Costs (VC): $1.24

Total Revenue = P x Units

Total Costs = (VC x Units) + TFC

BE = TFC

P-VC

  1. Determine the Breakeven point (BE) in units. Round upyour resulting number in units. Use this rounded number in your calculation
  2. Calculate the Total Revenue (TR).
  3. Calculate the Total Costs (TC).
  4. Create a chart and label the breakeven point, total revenue, total costs, profit area, loss area, fixed costs, and variable costs. Make your chart similar to the one on page 562, Exhibit PCM-10.

Open the Word document and provide you answers/comments the space following the questions.

Textbook

Robbins, Stephen P. and Mary Coulter, Management, 13th ed., Prentice-Hall, 2014

(ISBN: 9780133910292).

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