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1. Break-even Analysis Shad Valley 2007

7. Break - Even Analysis (Cost/Volume/Profit Analysis) Number of units produced and sold $ of Sales and Costs Total Revenue Line 1 2 $20 $10 The slope of the revenue line is determined by the price that you set for your product or service. Sales revenue when price per unit is $10.00.

8. Break - Even Analysis (Cost/Volume/Profit Analysis) Number of units produced and sold $ of Sales and Costs Total Revenue Line 1 2 $20 $10 The slope of the revenue line is determined by the price that you set for your product or service. Sales revenue when price per unit is $5.00.

9. Break - Even Analysis (Cost/Volume/Profit Analysis) Number of units produced and sold Total Revenue Line $7.50 $10 Total Variable Cost Contribution Margin per unit = $2.50 The slope of the revenue line is determined by the price that you set for your product or service. $ of Sales and Costs 1 2 If variable cost per unit is less than price per unit, there is a positive contribution margin.

17. Break Even Chart $ of Sales and Costs # of units produced and sold Total Revenue Total Costs Fixed Costs Break Even Point in Units TR = TC