ocr: Notes about the Breakeven Chart Notice that below 200 units volume the total cost line lies above the sales revenue line- this depicts the tact that beneath 200 units there isa oss-making situation. Above 200 units volume and the business will begin to ear a profit since the total revenue earned is greater than the total costs. At the breakeven point of 200 units the contribution earned of E5,000 200 units * (E100-E75)] is exactly equal to the tixed costs of E5,000. Once contribution earned is sufficient to cover fixed costs any further ncrease in volume will result in contribution which repre ...
(.png)
