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Method used to work out the breakeven

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Introduction

Method used to work out the breakeven My business is providing two services and selling two types of goods. The services being internet service and play- station usage. The two products being food and drink. It would be virtually impossible to construct a breakeven chart for all of them combined so I decided to construct one of my main income being internet service. In order to construct the breakeven I had to calculate all my fixed and variable costs. ...read more.

Middle

Firstly I figured out the average time a person spends on the internet, my research shows are one and half hours. 2. Then I calculated how much it would cost an adult for that long and a student for that long. Adult = �6.58 Student =�6.38 3. The percentage of adults that use the internet is 61.7% and percent of students that use it is 38.3% according to my research. ...read more.

Conclusion

Chart below shows the figures for my breakeven chart: customers fixed costs variable costs total costs sales revenue 1000 47851 0 47851 6500 2000 47851 0 47851 13000 3000 47851 0 47851 19500 4000 47851 0 47851 26000 5000 47851 0 47851 32500 6000 47851 0 47851 39000 7000 47851 0 47851 45500 8000 47851 0 47851 52000 9000 47851 0 47851 58500 10000 47851 0 47851 65000 Total costs = FC + VC Sales revenue = customers multiplied by price charged (�6.50) ...read more.

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