How Do You Create A Break Even Graph In Excel?
A break even point represents the number of units you must sell to begin making a profit, given your fixed costs, cost per unit, and revenue per unit. For example, you might want to know the break even point for selling Mylar balloons. If you know the break even point, you’ll know how many balloons you have to sell to make a profit. In order to graph a break even point using Excel 2007, you’ll need to know your fixed costs (building, equipment maintenance etc.) and variable costs (electricity, wages, and other fluctuating costs). On a graph, the break even point is shown by the intersection between revenue and total cost. In cell A1, type “Fixed Cost,” and in B1 enter the dollar amount of your fixed costs. For example, the supplier of mylar balloons requires that you pay $100 membership fee to be a buyer, and you are charged that amount no matter how many balloons you buy. In that case you would type “100” into B1. In cell A2, type “Cost per Unit,” and in B2 enter the dollar amount of