Drawing a Break Even Chart

What is the purpose of a break-even chart?

• To analyze the profit at different outputs

• To calculate the total revenue

• To plot the output on the vertical axis

• To draw a horizontal line for fixed costs

What is the break-even point on a break-even chart?

• Where the total revenue is greater than the total costs

• Where fixed costs and variable costs intersect

• Where the output is at its maximum

• Where total costs and total revenue lines cross

What were the fixed cost for Chris's surfboard business?

• £120,000

• £200,000

• £80,000

• £160,000

What is the total cost at an output of 2,000 surfboards for Chris's business?

• £320,000

• £240,000

• £200,000

• £280,000

What is the total revenue if Chris sells 2,000 surfboards at £200 each?

• £450,000

• £400,000

• £350,000

• £300,000

What does the area to the left of the break-even point represent on the chart?

• Loss

• Variable costs

• Profit

• Fixed costs

What does the area to the right of the break-even point represent on the chart?

• Variable costs

• Profit

• Fixed costs

• Loss

What does the point where the total cost line and total revenue line intersect represent on the break-even chart?

• Maximum profit

• Break-even point

• Maximum loss

• Minimum cost