Let's change the chart a little (Chart Styles): The range of horizontal axis titles is "Production Volume".And in the "Series value" line make a reference to the corresponding column with the data. These are the elements of the legend which called "Series". For the demonstration, we need the columns "Total costs", "Income", "Net profit".Click on chart and choose the look of the graph and click: «CHART TOOLS»-«DESIGN»-«Data»-«Select Data» on the button.Select range "Total costs", "Income", "Net profit" and select: «INSERT»-«Charts»-«Insert Line Chart».We will draw up a graph for a clear demonstration of the economic and financial condition of the enterprise:
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How to make the graph for break-even point in Excel? The volume of production is 12 units of goods. And in the break-even point, it is equal to zero. Since the 13th output, net profit has become positive. Let's fill in the table and see what output will help the enterprise ensure cost recovery. Net profit is income without fixed and variable production costs.Marginal revenue is a gross income without variable costs.Income is the product of the volume of production and the price of the goods.Total costs are the sum of variables and fixed costs.Variable costs depend on the volume of output.We compile the following table with the formulas to solve these tasks: Calculate the volume of sales which will perform breakeven.Establish a relationship between these parameters. Find the volume of production in which the company will receive a net profit.We will enter the data in the Excel table:
This is the cost of raw materials, utility bills for the use of energy resources on production facilities, wages of workers, etc. Variable costs (depend on production volumes). This is lease payments, taxes, salaries for management, leasing payments, etc.
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