Professional Documents
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Income Costs
Profit
50,000 40,000
10,000
Income Costs
50,000 60,000
Loss
10,000
At this point the business isnt making a profit or a loss it is simply breaking even.
Cost/Revenue
Number sold
Cost/Revenue
Fixed Cost
Number sold
Cost/Revenue
Number sold
Cost/Revenue
Number sold
Cost/Revenue
Profit
Sales Revenue Total Cost Fixed Cost
Break-even point
Loss
100
200
300
Number sold
Examples of costs
These vary, depending upon the type of business. Typical costs include:
Variable: materials, labour, energy Fixed: rent, business rates, interest on loans, insurance, staff costs (e.g. security)
IMPORTANT: No need to learn this. The formula is given on the assessment paper if you need it.
Tom:
100