Breakeven analysis This tool is useful in comparing machines with different fixed and varaible costs and determining

the
combination of machines most appropriate for different levels of sales. To use this tool effectively you will need to know
the following informationfor each potential machine: Fixed costs of the machine, variable costs per item produced and the
capacity of the machine. In addition you will need to know revenue per item produced. Input the details below and test out which
combination and order of machines results in the best position.
Price per unit 5
Maximum demand 100000
Machine 1 Machine 2 Machine 3
Fixed costs 10000 30000 50000
Variable cost per item 1 0.5 0.35
Capacity 25000 50000 75000
Breakeven analysis This tool is useful in comparing machines with different fixed and varaible costs and determining the
combination of machines most appropriate for different levels of sales. To use this tool effectively you will need to know
the following informationfor each potential machine: Fixed costs of the machine, variable costs per item produced and the
capacity of the machine. In addition you will need to know revenue per item produced. Input the details below and test out which
volume revenue costs
5000 25000 15000
10000 50000 20000
15000 75000 25000
20000 100000 30000
25000 125000 35000
30000 150000 50000
35000 175000 55000
40000 200000 60000
45000 225000 65000
50000 250000 70000
55000 275000 75000
60000 300000 80000
65000 325000 85000
70000 350000 90000
75000 375000 95000
80000 400000 100000
85000 425000 105000
90000 450000 110000
95000 475000 115000
100000 500000 120000
0
100000
200000
300000
400000
500000
600000
$

Volume
Revenue
Costs