Break-Even Point Calculation and Chart Creation in Accounting and Finance, Schemes and Mind Maps of Accounting

Download Break-Even Point Calculation and Chart Creation in Accounting and Finance and more Schemes and Mind Maps Accounting in PDF only on Docsity! Accounting  &  Finance:  Task  3       Activity  Sheet:  Break-­‐Even  Point     Name:  _________________________________________     Activity  Sheet:  Break-­‐Even  Point     Departments:    All     Part  1  –  Calculate  the  break-­‐even  point   in  number  of  units  sold.   Directions:   1. Recall  the  fixed  costs  and  variable  costs  for  the  business  that  were  identified  in  lesson  2.   2. Identify  the  price  of  the  product  or  service  you  are  selling.   3. Use  the  formula  to  calculate  the  break-­‐even  point  in  number  of  units.     Fixed  Costs  =  _____________   Variable  Costs  =  ________________   Price  =  _____________   (Cost  Per  Unit)     𝐵𝐸𝑃 = 𝐹𝑖𝑥𝑒𝑑  𝐶𝑜𝑠𝑡𝑠 𝑃𝑟𝑖𝑐𝑒 − 𝑉𝑎𝑟𝑖𝑎𝑏𝑙𝑒  𝐶𝑜𝑠𝑡       Break  Even  Point  =  ___________  units           Part  2  –  Calculate  the  break-­‐even  point   in  dol lars.   Directions:   1. Use  the  fixed  costs,  variable  costs,  and  price  that  were  identified  in  Part  1.   2. Use  the  formula  to  calculate  the  break-­‐even  point  in  dollars.     Fixed  Costs  =  _____________   Variable  Costs  =  ________________   Price  =  _____________   (Cost  Per  Unit)     𝐵𝐸𝑃 = 𝐹𝑖𝑥𝑒𝑑  𝐶𝑜𝑠𝑡𝑠 (1 − 𝑉𝑎𝑟𝑖𝑎𝑏𝑙𝑒  𝐶𝑜𝑠𝑡 𝑃𝑟𝑖𝑐𝑒 )         Break  Even  Point  =  $______________  dollars       Accounting  &  Finance:  Task  3       Activity  Sheet:  Break-­‐Even  Point     Name:  _________________________________________     Part  3  –  Create  a  break-­‐even  chart  using  Excel.     Directions:   1. Open  the  Excel  workbook,  f inancialplanning.yourname,  which  was  saved  in  the   previous  lesson.   2. Select  the  Break-­‐Even  Analysis  tab.   3. Enter  your  company’s  name  on  Row  1.   4. Enter  the  necessary  information  in  the  yellow  cells  as  shown  below.                       Insert  the  fixed   and  variable   expenses  here   Enter  the  Price   of  the  product   or  service  here   The  formulas  in  cells  B10  and  B11  will  calculate   the  breakeven  point  in  Units  and  Dollars.   Check  that  these  results  match  your  work  in   Parts  1  &  2  of  this  Activity  Sheet.