Break even graphs

Question 1

How do you tell which line is the fixed costs?

Answer 1

the line that goes straight across and doesn’t go up or down.

Question 2

How do you tell which line is the total costs line?

Answer 2

the line that starts from the fixed costs line.

Question 3

How do you tell which line is the sales revenue line?

Answer 3

the line that starts from 0.

Question 4

How do you tell where the break even point on a graph is?

Answer 4

the point the total costs line and sales revenue line cross.

Question 5

How do you find the variable cost per unit from a graph?

Answer 5

(total cost at break even point - fixed costs = variable costs) / units

Question 6

How do you find the selling price per unit from a graph?

Answer 6

total revenue at break even point / break even units