22.5 - Graphical Representation: Break-even Chart
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Practice Questions
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What does the X-axis represent in a break-even chart?
💡 Hint: Think about what changes with the amount of product sold.
What does the intersection of total cost and total revenue lines signify?
💡 Hint: What does it mean for profit or loss?
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Interactive Quizzes
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What does the break-even chart illustrate?
💡 Hint: Look for the relationship that involves profit.
True or False: The total cost line always starts from zero.
💡 Hint: Consider where fixed costs begin.
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Challenge Problems
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Your company currently sells 1,000 units at ₹400 each, with fixed costs of ₹80,000 and variable costs of ₹250 per unit. If you decrease the selling price to ₹350, what will be the new break-even point?
💡 Hint: Recalculate the break-even point using the new price.
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