Upcoming SlideShare
Loading in …5
×

# Breakeven charts

6,218 views

Published on

0 Comments
1 Like
Statistics
Notes
• Full Name
Comment goes here.

Are you sure you want to Yes No
Your message goes here
• Be the first to comment

No Downloads
Views
Total views
6,218
On SlideShare
0
From Embeds
0
Number of Embeds
4,919
Actions
Shares
0
Downloads
0
Comments
0
Likes
1
Embeds 0
No embeds

No notes for slide

### Breakeven charts

1. 1. BreakevenChartsBreaking even at CrokePark
2. 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. 3. What are the Fixed andVariable costs for the GAA
4. 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. 5. Step 1 – Calculate theBreakeven point Formula: (show workings) Total Fixed Costs Contribution per unit
6. 6. Step 2 - Calculations Workings
7. 7. Step 3 – Illustrate theinformation on a breakevenchart.
8. 8. Step 4 – Profit at MaximumCapacity Profit = Total Revenue – Total Costs
9. 9. Step 5 - Margin of Safety How far estimated  Formula: sales can fall before the firm  Volumeof Sales – becomes loss Breakeven point making
10. 10. Illustrate the effect on thebreakeven point if variablecosts increased to €30
11. 11. Evaluate the benefits of aBreakeven chart
12. 12. The GAA has suggested that in orderto plan for the future a realistic SWOTanalysis needs to be carried out