Practice Graphical Representation: Break-even Chart (22.5) - Break-even Analysis and Marginal Costing

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5 sample questions

Question 1.
What does the X-axis represent in a break-even chart?
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Think about what changes with the amount of product sold.
Question 2.
What does the intersection of total cost and total revenue lines signify?
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What does it mean for profit or loss?
3Question 3.
What does the break-even chart illustrate?
- Relationship between cost and profit
- Relationship between cost and quality
- Relationship between units sold and price
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Look for the relationship that involves profit.
4Question 4.
True or False: The total cost line always starts from zero.
- True
- False
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Consider where fixed costs begin.
Question 5.
Your company currently sells 1,000 units at ₹400 each, with fixed costs of ₹80,000 and variable costs of ₹250 per unit. If you decrease the selling price to ₹350, what will be the new break-even point?
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Recalculate the break-even point using the new price.

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