break+even+activity

** Break even  ** Worksheet: An introduction to break even  Scenario Donald Veezer is an entrepreneur who has decided to sell high quality tweezers to the cosmetics market. Using the market research conducted he has come up with the following costs:  (all figures are in $) Rent/month 1,650.00 Packaging per pair of tweezers 1.50 Salaries/month 10,000.00 Production wages/pair of tweezers 0.50 Loan repayments/month 600.00 Raw materials/pair of tweezers 3.00 Telephone/month 150.00 Office supplies/month 100.00 Donald plans to sell the tweezers for $10 per unit. Task 1 Using a textbook or other source of reference as necessary, find and write down the definitions for: ** a) ** Fixed costs

** b) **Variable costs

** c) ** Total costs

<span style="margin-bottom: .0001pt; margin-bottom: 0in; margin-left: 17.85pt; margin-right: 0in; margin-top: 6.5pt; tab-stops: .25in 25.5pt 44.0pt right lined 481.95pt; text-indent: -17.85pt;">** d) ** Total revenue

Task 2 Using Donald Veezer’s Tweezers cost information, split his costs into fixed and variable costs. Task 3 Using the figures from the statement construct a break-even table using the sales figures 0, 1,000, 2,000, 3,000, 4,000, 5,000.
 * ** Fixed costs ** || ** Variable costs ** ||


 * ** Output ** || ** 0 ** || ** 1,000 ** || ** 2,000 ** || ** 3,000 ** || ** 4,000 ** || ** 5,000 ** ||
 * ** Fixed cost ** || || || || || || ||
 * ** Variable cost ** || || || || || || ||
 * ** Total cost ** || || || || || || ||
 * ** Total revenue ** || || || || || || ||

Task 4 Construct a break-even graph. Plotting only lines for fixed costs, total cost and total revenue.

**Task 5** Using the mathematical equation below for break even, work out the number of units to be sold in order to break even. (Show all your workings.)