The break even formula is
Fixed cost
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(Selling price- Variable costs per unit)
1350
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£3.00 - £1.50 = £1.50
The breakeven point is £900
In the table above I can see the fixed cost have decreased to £1125 per month, in the original sheet it was £1200 pounds and has decreased by £75. The variable costs and the revenue are the same as originally predicted but the total cost and the profit/ loss has changed a lot. The total cost on the original sheet for 16000 customers was 25200 and the total cost for 16000 customers when the fixed cost is 1125 is 24000 pounds. The profit/ loss for the original, is for 8000 customers the profit is 10800 and for my new table my profit/ loss for 8000 customers is 10875.
The break even calculation is:
1125
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£3.00 - £1.50= £1.50
The break even point is £750
Changes In variable costs
In the graph above the variable costs have increased to £1.75, in the original table the variable cost was £1.50. The fixed cost and the revenue is the same as the original, but the total cost and profit/ loss is different. In the original table the total cost for 18000 customers was 28200 and the total cost in the table above for 18000 customers is 32700. There is a big difference in the table above compared to the original.
1200
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£3.00- £1.75= £1.25
The break even point is £960
In the table above the fixed cost is the same as the original, but the variable cost has decreased to £1.40. The revenue is the same as original but the total costs and profit/ loss is different. On the original sheet the total cost for 6000 customers is £10200 and in the table above at 6000 customers the total cost is 9600. So the difference between the two is 600.
The profit/ loss on the original sheet are lower than the table above because on the original sheet at 10000 customers the profit/ loss are 13800, and on the table above the profit/ loss are at 14800. So the difference is 1000.
1200
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£3.00- £1.40= £1.60
So the breakeven point is 750.
Changes in Revenue
The table above shows a change in the revenue. The original revenue was £3.00, but the table above is £3.50. The fixed and variable costs are the same as the original, but the Revenue is different. The profit/ loss are different because in the original table at 14000 customers the profit/ loss are 19800 and in the table above the profit/ loss for 14000 customers are 26800.
1200
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£3.50- £1.50= £2.00
The breakeven point is £600
The table above has a revenue of £2.70. The fixed and variable costs are the same as the original table. The revenue is different so at 8000 customers the original the revenue is 24000, and on the table above at 8000 customers the revenue is 21600.
1200
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2.70- 1.50= 1.20
The break-even point is 1000