Scribd Logo
Upload

Welcome to Scribd!

  • Excurse 6

    Uploaded by

    Nadim Ali
    12 views2 pages
    1. The document describes the construction of a graphical representation showing sales units, sales revenue, fixed expenses, variable expenses, and the breakeven point. 2. It involves plotting the horizontal axis for sales units, vertical axis for costs/revenue, and then drawing lines to represent sales revenue at 15,000 units, fixed expenses of $150,000, variable expenses of $420,000, and total expenses. 3. The breakeven point is where the total expenses line crosses the sales revenue line, which is determined to be at 12,500 units or $500,000 in sales revenue.

    Original Description:

    Copyright

    © Attribution Non-Commercial (BY-NC)

    Available Formats

    DOC, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Report this Document
    1. The document describes the construction of a graphical representation showing sales units, sales revenue, fixed expenses, variable expenses, and the breakeven point. 2. It involves plotting the horizontal axis for sales units, vertical axis for costs/revenue, and then drawing lines to represent sales revenue at 15,000 units, fixed expenses of $150,000, variable expenses of $420,000, and total expenses. 3. The breakeven point is where the total expenses line crosses the sales revenue line, which is determined to be at 12,500 units or $500,000 in sales revenue.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as DOC, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    12 views2 pages

    Excurse 6

    Uploaded by

    Nadim Ali
    1. The document describes the construction of a graphical representation showing sales units, sales revenue, fixed expenses, variable expenses, and the breakeven point. 2. It involves plotting the horizontal axis for sales units, vertical axis for costs/revenue, and then drawing lines to represent sales revenue at 15,000 units, fixed expenses of $150,000, variable expenses of $420,000, and total expenses. 3. The breakeven point is where the total expenses line crosses the sales revenue line, which is determined to be at 12,500 units or $500,000 in sales revenue.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as DOC, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 2

    Excurse 6-6 [Graphical presentation]

    Construction Procedure:
    1.

    Drawing the axis: The horizontal axis


    represents sales units in 000 2 the vertical axis in the amount of sales costs in 000 dollar.

    2.

    Platting sales Units: Actual sales units are


    15,000 platted actual sales dollars at that volume: 15000 X $40 = 6,00,000 Drawn the sales revenue line from point A (sales revenue) to the origin point O.

    3.

    Plotting fixed expense: Drawn the fixed


    expense line showing $1,50,000 of fixed portion of total expense. It is horizontal line, intersecting the vertical axis at $1,50,000 point B.

    4.

    Plotting variable expense: Actual variable


    expense are $ 4,20,000. Add this fixed expense. There by total expense being ( $1,50,000 + $4,20,000 = $570000) plotted point C for $5,70,000. Then drawn a line between this point and point B. This is total expense line.

    5.

    Locating BEP: The BEP line at that point where


    the total expense line crosses the sales line 15,000 units or 6,00,000 where sales revenue exactly equal to total cost in 12,500 units or $5,00,000 point D.

    You might also like