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Task 6

P6

An organisations break-even point is the point when income is equal to expenditures resulting in neither profit or loss. The break-even point is significant to organisations as public and not-for-profit sectors usually aim to achieve this point, whereas private organisations wish to earn above this point.

Coca Cola Café break-even table

The Coca Cola Café’s break-even table displays the business minimum and maximum output in a 30 day period along with the financial data associated with each unit of output. The data acquired from this table can be used to plot points on the break-even graph.

|Unit of output |Fixed costs |Variable costs |Total costs |Total revenue |Profit / loss |
|0 |£39,130 |£0 |£39,130 |£0 |- £39,130 |
|500 |£39,130 |£3580 |£42,710 |£7750 |- £34,960 |
|1000 |£39,130 |£7160 |£46,290 |£15,500 |- £30,790 |
|1500 |£39,130 |£10,740 |£49,870 |£23,250 |- £26,620 |
|2000 |£39,130 |£14,320 |£53,450 |£31,000 |- £22,450 |
|2500 |£39,130 |£17,900 |£57,030 |£38,750 |- £18,280 |
|3000 |£39,130 |£21,480 |£60,610 |£46,500 |- £14,110 |
|3500 |£39,130 |£25,060 |£64,190 |£54,250 |- £9940 |
|4000 |£39,130 |£28,640 |£67,770 |£62,000 |-

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