Create a spreadsheet: To do a break-even calculation, you will construct or use a spreadsheet then turn the spreadsheet into a graph. The spreadsheet will plot break-even for each level of sales and product price, and it will create a graph showing you break-even for each of these prices and sales volumes. To graph a break-even point using Excel 2007, you'll need to know your fixed costs (building, equipment maintenance, and so forth) and variable costs (electricity, wages, and other fluctuating costs). On a graph, the break-even point is shown by the intersection between revenue and total cost. Step 3 Fix the X axis (capacity) You will be able to start drawing very soon! If you are given a maximum capacity, use that figure. If not, double the break-even quantity is a good guide figure, or 16,000 units in this case. Draw a graph to find the break-even point. In a cost-volume-profit graph, the break-even point is the sales volume where the total sales line intersects with the total costs line. This sales volume is the point at which total sales equals total costs. How To Create A Simple Break-Even Analysis Using Excel Business performance can be measured by a lot of things, but nothing can say a lot about how your business performs than a break-even analysis. A break-even analysis determines your break-even point (BEP), which is the point at which the total cost and total revenue of the business are equal. Interpretation of Break Even Analysis. As illustrated in the graph above, the point at which total fixed and variable costs equal to total revenues is known as the break even point. At the break even point, a business does not make a profit or loss. Therefore, the break-even point is often referred to as the ‘no-profit’ or ‘no-loss point.’

## Interpretation of Break Even Analysis. As illustrated in the graph above, the point at which total fixed and variable costs equal to total revenues is known as the break even point. At the break even point, a business does not make a profit or loss. Therefore, the break-even point is often referred to as the ‘no-profit’ or ‘no-loss point.’

A break-even chart plots the sales revenue, different costs and helps identify the break even point and margin of safety. Drawing breakeven charts. To draw a 6 and total fixed cost of the company is Rs. 40,000 per annum. Draw a Break- even chart showing: (a) Break-even Point,. (b) Margin of Safety, The break-even chart, also known as the Cost volume profit graph, is a graphical representation of the sales units and the dollar sales required for the break-even. Microsoft even provides a template for a simple Excel break-even chart. results in the shaded boxes and the bars or lines of your graph, which should change.

### Create a spreadsheet: To do a break-even calculation, you will construct or use a spreadsheet then turn the spreadsheet into a graph. The spreadsheet will plot break-even for each level of sales and product price, and it will create a graph showing you break-even for each of these prices and sales volumes.

How To Create A Simple Break-Even Analysis Using Excel Business performance can be measured by a lot of things, but nothing can say a lot about how your business performs than a break-even analysis. A break-even analysis determines your break-even point (BEP), which is the point at which the total cost and total revenue of the business are equal. Interpretation of Break Even Analysis. As illustrated in the graph above, the point at which total fixed and variable costs equal to total revenues is known as the break even point. At the break even point, a business does not make a profit or loss. Therefore, the break-even point is often referred to as the ‘no-profit’ or ‘no-loss point.’ 5. Advantages of Break Even Charts: a. Information provided by the break even chart can be understood by the management more easily than contained in the Profit and Loss Account and the Cost Statements because a break even chart is the simple presentation of cost, volume and profit structure of the company. Explanation of break-even point: The point at which total of fixed and variable costs of a business becomes equal to its total revenue is known as break-even point (BEP). At this point, a business neither earns any profit nor suffers any loss. Break-even point is therefore also known as no-profit, no-loss point or zero profit point.