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Breakeven charts

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Transcript

  • 1. BreakevenChartsBreaking even at CrokePark
  • 2. Breaking even at Croke ParkThe GAA Congress has supplied thefollowing information about CrokePark.It has a seating capacity of 80,000.Croke park’s total annual fixed costsare over €2 million per annum.The selling price per ticket is €70The variable cost per unit is €20The GAA needs to know how manytickets do they need to sell in order tobreakeven?
  • 3. What are the Fixed andVariable costs for the GAA
  • 4. Question Illustrate by means of a breakeven chart  The breakeven point  The profit at maximum capacity  The margin of safety at maximum capacity
  • 5. Step 1 – Calculate theBreakeven point Formula: (show workings) Total Fixed Costs Contribution per unit
  • 6. Step 2 - Calculations Workings
  • 7. Step 3 – Illustrate theinformation on a breakevenchart.
  • 8. Step 4 – Profit at MaximumCapacity Profit = Total Revenue – Total Costs
  • 9. Step 5 - Margin of Safety How far estimated  Formula: sales can fall before the firm  Volumeof Sales – becomes loss Breakeven point making
  • 10. Illustrate the effect on thebreakeven point if variablecosts increased to €30
  • 11. Evaluate the benefits of aBreakeven chart
  • 12. The GAA has suggested that in orderto plan for the future a realistic SWOTanalysis needs to be carried out