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Words: 1,500 | Submitted: Sun May 25 2008
... 15000 To find the Profits/Loss: Revenue -Total Cost= Profit/Loss £15,000.00 - £28,000.00= -£13,000.00 To find the Total Cost: Variable + Fixed Cost= Total Cost £10,000.00 + £18,000.00= £28,000.00 To find Break Even Point: Selling Price- Materials= Break Even Point £15 - £7= £8 Total Fixed Cost Selling Price - Materials Units Fixed Costs Variable Costs Total Costs Revenue Profit/Loss 0 £18,000.00 £0.00 £1,800.00 £0.00 -£1,800.00 1,000 £18,000.00 £10,000.00 £28,000.00 £15,000.00 -£13,000.00 5,000 £18,000.00 £50,000.00 £68,000.00 £75,000.00 £7,000.00 5,500 £18,000.00 £55,000.00 £73,000.00 £82,500.00 £9,500.00 10,000 £18,000.00 £100,000.00 £118,000.00 £150,000.00 £32,000.00 10,500 £18,000.00 £105,000.00 £123,000.00 £157,500.00 £34,500.00 11,000 £18,000.00 £110,000.00 £128,000.00 £165,000.00 £37,000.00 11,500 £18,000.00 £115,000.00 £133,000.00 £172,500.00 £39,500.00 12,000 £18,000.00 £120,000.00 £138,000.00 £180,000.00 £42,000.00 12,500 £18,000.00 £125,000.00 £143,000.00 £187,500.00 £44,500.00 13,000 £18,000.00 £130,000.00 £148,000.00 £195,000.00 £47,000.00 13,500 £18,000.00 £135,000.00 £153,000.00 £202,500.00 £49,500.00 14,000 £18,000.00 £140,000.00 £158,000.00 £210,000.00 £52,000.00 The three objectives I am going to choose that the company have, and use to see how break even helps to achieve the objectives are: 1) To make profit by selling goods to customers. 2) The purpose of the business is to sell a number of production units, to increase sales and profits. 3) To offer customers the best value for money at the most competitive prices. a) What information does the break even provide the firm with in order for them to meet their aims/objectives e.g. costs, revenue, profit etc? The break even point on the graph indicates that it is the point at which the gains equal the losses. There ...
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