!
"
#
$
%
#
!
'
'
'
'
'
(
!
#
)
&*
'
+++
,% ,
.
&
.
!
/
!
,!
0
&
'
'
%
1
#
!
&
%
2
#
'
%
3
'
#
4
0
*
!
#
!
Total costs = variable costs + fixed costs
Operating income = total revenues – total costs
Net income = operating income – income taxes
3
(
5
(
!
6
&
%
#
"
/
/
/
*
*
#
(
#
.
7
The following abbreviations are used
87 9
8
9
8 (9
0 9 !
: 9)
5-9
35-9
6-9
&
87 8
#
%
#
$
3
#
!
"3
!
'
'
%
$3
#
!
&
%
#
;
3
%
3
%
)
#
) '
'
=
&
%
#
<
)
#
3
&
87 !: ? 8
!: ? 0 9 5-
87 8
!: 9 0 @ 58 ( !: 9 0 @ 5-
: 9 0 @ 58 (
At the breakeven point, operating income is zero
A
6
%
9
0!
8
9
&
%
#
0
8 (
>
3
)
#
-
!
'!
C +++
CB+ C ++ C +
Breakeven # of units = 2000/80 = 25 units
/
#
.
'C ++! ;
C; +++
'C +! ;
" +++
'CB+! ;
+++
+++
+
0!
5
&
%
#
B
E
&
%
#
D
&
%
#
+
&
%
#
7
#
#
7
!
#
#
%
( #0
5
!
7
C +++
0
&
%
#
0
'
#
'
&
%
#
"
!
6
&
%
#
<