Break Even Charts
1. The business Tyres for You has fixed costs of £1600 per month.
The revenue per sale is £450, and the variable cost per unit is £320.
(a) Complete the table below showing Fixed Costs, Total Revenue and Total Costs and how
they vary with the sales output.
Output(Sales)
0
2
4
6
8
10
12
14
Fixed Costs
1600
1600
1600
1600
1600
1600
1600
1600
Total Costs
Revenue
(b) Use the graph to estimate:
(i) The loss when 2 tyres are fixed per month
(ii) The loss when 8 tyres per month are fixed
(iii) The break even output.
(iv) The profit when 18 tyres per month are fixed
(v) The profit when 24 tyres are fixed per month