ocr: lotalCost=lotal Revenue Graph 1000 Total 900 Kevenue 800 Breakeven point at 700 10 units of sale Total Costs 600 - - - - - - - - - - - - - - - - - - - - - 500 300 - - L - - L Profits - - - - 400 1 - - - 200 100 Losses 0 5 10 15 20 25 30 35 40 45 - 50 Volume/Activity (units) The graph tells us that at sales of 10 units we will neither make a profit or - a loss, that is, we will just breakeven. We can also prove this by drawing up a variable costing statement which relates to a weekly sales figure of10 units.
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