Question

Problem 2 (5 Marks/20) Breakeven analysis is an important tool to assist manage systematic assessment of the project revenues and costs Hagers in decision making based on performing a Sketch a Breakeven Analysis chart showing what requested a) Fixed Cost line, Total Cost line. Total Revenues line, and mg what requested below b) Mention an example where Brea chuon an example where Breakeven may happen in business enues line, and the Breakeven Point Costs Irixed loss Rountry sold TR 1 Profit CTC " TVC Cost Tre break enen porat - - ---TRACO IRT I fixed cost cost Cantty sold Dr. Yousef Alshammari when you have a company that you spend mony Bag in sallary, buy products or material that and this is the total cost. the break even when products or material testis ard so, an

Answer 1

-TR (Total Revenu) Total Lost protit Area Dollars Break even Point Area Loss Fixed lost Units Total Cest and Break even happens where the Total cost of from are equal, Break even = TR=1 or TR-TC=0 Here Company must increase its output it difference between TR and PC is positive. It will increase profit-