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Units Sold
9
© Dale R. Geiger 2011
Graphic Depiction of Breakeven
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© Dale R. Geiger 2011
Graphic Depiction of Breakeven
$ 5000
4500
4000
3500
3000
Fixed Cost
2500
Variable Cost
2000
Revenue
1500
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0
0 25 50 75 100 125 150
Units Sold
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© Dale R. Geiger 2011
Graphic Depiction of Breakeven
$ 5000
4500
4000
3500
3000 Fixed Cost
2500 Variable Cost
2000 Total Cost
1500 Revenue
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0 25 50 75 100 125 150
Units Sold
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© Dale R. Geiger 2011
Graphic Depiction of Breakeven
$ 5000
4500
4000
3500
3000 Fixed Cost
2500 Variable Cost
2000 Total Cost
1500 Revenue
1000
500
0
0 25 50 75 100 125 150
Units Sold
13
© Dale R. Geiger 2011
Graphic Depiction of Breakeven
$ 5000
4500
4000
3500
3000 Fixed Cost
2500 Variable Cost
2000 Total Cost
1500 Revenue
1000
500
0
0 25 50 75 100 125 150
Units Sold
14
© Dale R. Geiger 2011
Graphic Depiction of Breakeven
$ 5000
4500
4000
3500
3000 Fixed Cost
2500 Variable Cost
2000 Total Cost
1500 Revenue
1000
500
0
0 25 50 75 100 125 150
Units Sold
15
© Dale R. Geiger 2011
Check on Learning
• How is the breakeven equation expressed?
• Which variables are represented on the graph
by upward sloping lines?
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Units Sold
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© Dale R. Geiger 2011
Proving the Solution
• Plug solution into the original equation: