- This topic has 1 reply, 2 voices, and was last updated 3 years ago by John Moffat.
Viewing 2 posts - 1 through 2 (of 2 total)
Viewing 2 posts - 1 through 2 (of 2 total)
- You must be logged in to reply to this topic.
Specially for OpenTuition students: 20% off BPP Books for ACCA & CIMA exams – Get your BPP Discount Code >>
Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA PM Exams › Break-even point calculation and break-even point on Breakeven chart
The break-even point is where profit is zero which where the contribution = fixed cost when using calculation method.
Q> in the example of the breakeven chart using the same figures in the lecture, the breakeven point was not where the fixed cost line was – why is that? I get that at the point where total revenue and total cost crosses there is zero-profit and hence a break-even point. It seems conflicting to the calculation method of break-even point being where contribution = fixed cost.
How would you draw the contribution on the break-even graph?
Thank you sir.
The breakeven chart is not showing the contribution. It is showing total revenue and total costs. Breakeven is when total revenue equal’s total cost.
We do not show the total contribution on the break-even chart!