Look at the diagram below showing the break-even point for a business. Then complete the description below using words from the box.
break - even point loss sales revenue variable costs
fixed costs profit total costs
£
Sales revenue
profit
Total costs
X
Variable costs
loss
Fixed costs
A
0 break – even point Amount of sales
The horizontal line shows (1)........................ The dotted line which starts at point 0 shows the (2).......................... for different levels of sales. The (3)....................... are fixed costs and variable costs combined. The solid line starting at point 0 shows the (4).............................................. at different levels of units sold. Point X is the (5)........................ To the left of pointX, the business is making a (6)................... To the right, the business is in (7).......................
