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- A break-even chart, also known as a break-even analysis or graph, visually represents the relationship between costs, revenue, and profit levels at various levels of sales volume. The chart displays fixed costs, variable costs per unit, total costs, total revenue, and the break-even point (where total revenue equals total costs) on a graph.
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How do you create a break-even chart in Excel?
Learn how to calculate the break-even point using a simple formula and a graphical representation called the break-even chart. See examples of how to apply break-even analysis to different scenarios and factors that affect it.
- Creating Your Variable Costs Table: Open Excel and create a new blank workbook. You'll be creating multiple sheets in this workbook to handle tracking all of your costs.
- Creating Your Fixed Costs Table: Click the "+" button next to "VariableCosts" at the bottom of the screen. This will create another blank worksheet. Rename the new sheet to "FixedCosts".
- Creating the Break Even Sheet: Rename Sheet1 to "BEP" and select it. This sheet will house your main BEP (Break Even Point) chart. You don't have to rename it to "BEP," but it will be easier to navigate your workbook if you do.
- Entering Your Formulas: Enter the variable costs formula. This will calculate the total variable costs for the number of items you sell. Click C5 and enter the following formula: =SUM(VariableCosts)*Units_Sold.
Mar 21, 2024 · Learn how to create a break even chart to analyze the relationship between cost and sales and the profitability of a project or company. See examples of break even chart for different scenarios and how to calculate the break even point, fixed and variable costs, and revenue.
Apr 2, 2024 · Learn how to calculate the break-even point (BEP) and the contribution margin for a product or service. Find out how BEP helps businesses with pricing, decision-making, cost reduction, and performance measurement.
Learn how to calculate and use break-even point to plan and manage your small business. Find out the importance, methods, and limitations of break-even analysis with practical examples.
Jul 2, 2014 · Learn how to calculate the point at which a business or project breaks even, and why it matters for decision making. This article explains the concept, formula, and examples of breakeven analysis.
Learn how to create and interpret a break-even chart, a graph that shows the relationship between costs, revenue, and profit at different sales volumes. See an example problem and practice with exercises on break-even analysis.
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