How do you plot a breakeven chart?
Say for example:
Selling Price per unit: £51
Variable cost per unit: £21
Therefore contribution: £30
Fixed costs: £170,000 per year OR £14,166.66 per month (I would rather do monthly)
Break even= £14,166.66/£30= 472.2 Units Rounded up to 473 Units
I know to plot the break even chart the £14,166 will stay at the same point. But the part I am stuck on is how do I work out Total Sales and Total Costs and also where do i plot them on the break even chart, like where do i match the Costs with the units? And how steep to draw the line?
Whoever can help I will be really greatful