Instructions
The main aim of most businesses is to make a profit. To do this a business needs to take in more money (total revenue) than its costs to produce its goods and services (total cost). Complete the data in the tables to plot the fixed, variable and total cost lines and the total revenue line to work out the break-even point for an ice cream seller.
Revenue
Break-even can be found where TOTAL REVENUE = TOTAL COST. Total cost has been calculated in the past activity now total revenue (the money taken from selling goods) needs to be worked out. Using the same ice cream seller, if we assume that he sells his goods at £1 each we can calculate how much revenue he takes in from selling ice creams. Complete the table below.
| Number of ice creams sold | Total revenue (number x £1) |
|---|---|
0 |
0 |
50 |
0 |
100 |
0 |
150 |
0 |
200 |
0 |
250 |
0 |
300 |
0 |
350 |
0 |