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Identify the Break-Even Point 1 What does it mean to break-even? - PowerPoint PPT Presentation

Identify the Break-Even Point 1 What does it mean to break-even? 2 What is a break-even point? 3 Calculating the Break-Even Point (BEP) in number of units (items) 4 Calculating Break-Even point for a Lemonade


  1. Identify the Break-Even Point 1

  2. What does it mean to break-even? ➢ ➢ • • • • 2

  3. What is a break-even point? 3

  4. Calculating the Break-Even Point (BEP) in number of units (items) 4

  5. Calculating Break-Even point for a Lemonade Stand: In Number of Units 5

  6. Calculating the Break-Even Point (BEP) in number of dollars (sales) 6

  7. Calculating Break-Even point for a Lemonade Stand: In Dollars 7

  8. Charting the Break-Even point Lemonade Stand Break-even Analysis Price $ 0.50 Fixed Expenses $ 6.00 Variable Expenses $ 0.25 Breakeven Point 24.00 Units Sold Revenue Total Expenses 4 $ 2.00 $ 7.00 8 $ 4.00 $ 8.00 12 $ 6.00 $ 9.00 16 $ 8.00 $ 10.00 20 $ 10.00 $ 11.00 24 $ 12.00 $ 12.00 28 $ 14.00 $ 13.00 32 $ 16.00 $ 14.00 8

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