BREAK EVEN CHARTS

Question 1

What the chart looks like

Answer 1

https://docs.google.com/document/d/1VLD51GwhINJlmGd0Ll1RQxL2pAdA3FbjmCUmRLocUr0/edit

Question 2

What you may have to do assembling a chart

Answer 2

Horizontal axes shows output

Vertical axes shows costs and sales revenue

In the exam you may have to fill in the axes yourself with the numbers

The first line you plot is fixed costs

the second line you plot is variable costs (starts as 0 and rises vertically)

The third line you plot is total costs (it starts on the fixed costs line and rises vertically - Should rise parallel to variable cost lines)

The fourth line that you plot is the total revenue - Starts from 0 and rises vertically

The fifth line you plot is the break even point - This is plotted from where the total revenue and total costs plots meet, and then you draw a line to the bottom of the chart.

Question 3

What is the first line that you plot

Answer 3

The first line you plot is fixed costs

Question 4

What is the second line that you plot

Answer 4

the second line you plot is variable costs (starts as 0 and rises vertically)

Question 5

What is the third line that you plot

Answer 5

The third line you plot is total costs (it starts on the fixed costs line and rises vertically - Should rise parallel to variable cost lines)

Question 6

What is the forth line that you plot

Answer 6

The fourth line that you plot is the total revenue - Starts from 0 and rises vertically