Break Even Point Graph Analysis Formulas and Example

Download chart and graphical display template of breakeven point in different project management a plan, formulas and different example has been applied for different variations.

To identify brake even point in the business through graphical diagrams is easy and effective practice. Sales volume graphs and total costs graphs are also added up here for the business owners. For person who is unaware of this technical term telling the meaning of this term is important.

Business Project Forecast Planning

Breakeven point is a term used in businesses of every kind whether it is a grocery store or whether it is a multinational firm or an industry. It shows the point where the business is making zero profit however costs are also zero.

How is this possible? When the cost of sales and other costs incurred in the business are covered including all the expenses at that point company is making no profit however it is also not contributing anything from the owner pocket. Whenever a business is initiated reaching this point is basic goal of the owner.

Format of Breakeven Point Graph Analysis Template

Check out how to conduct analysis of breakeven point graph in lower to higher projector. These cost mentioned below vary the forecasted plan monthly or yearly.

  • Fixed costs: different lines are used on graph to show the different kinds of costs incurred in the business. Fixed costs as the name implies are costs with fixed amount of money.
  • Variable costs: these are the costs which vary with the time and operations of the business.
  • Net costs: these are the total costs incurred in the business.
  • Total sales: sales are a source of earning revenue in the business.

Break Even Point Graph Analysis

Breakeven Point Business Analysis

Before setting objective of the business and to give targets to the employees and staff employed it is important to realize the costs incurred in the business. The difference between the total sales and total costs is the profit made by the business. The intersection point of these two lines breakeven point.

Breakeven Point Graph Excel Template

It is usually discuss among the board members therefore having graphical diagram is useful practice to give the snapshot of the company performance.

X- Axis is used for sales volumes in units while y-axis shows amount of profit earned. For more detail about that, contact AccoutingFeed.com against different particular project nature.

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