How to prepare a Breakeven Chart in Excel, Breakeven, Fixed Costs, Variable Costs, Overheads, Business model, Cover overheads, Meet overheads, Business graph, Direct costs, Gross Margin, Excel, Spreadsheet, Spreadsheets,

1. A Breakeven Chart
in Excel
by
cliff beacham

2. Equation
B/E = Fixed Cost / Unit Price – Variable cost
B/E = Fixed Cost / Contribution
Where:
Contribution = Price – Unit Variable cost

3. Example:
B/E = Fixed Cost / Unit Price – Variable cost
B/E = Fixed Cost / Contribution
B/E = $120,000 / $3.00 = 40,000 units
Where:
Contribution = Price – Unit Variable cost
$3.00 = $15.00 - $12.00

4. Example Chart:

5. Finished
Application is linked all the way.
Change the parameters and the graph is
interactively responsive.

6. How did we do this chart?
1. Use Excel
2. Prep Data
3. Insert and config Graph
4. Copy / Camera-Paste Picture
5. Format picture
In a nutshell:
Example 01: BE_Analysis_cv01.xlsx

7. Prep Data 1
Set up an input area that you can reference:

8. Prep Data 2
Set up a table area to hold the graph data:

9. Prep Data 3
Excel >> Select the data >> see columns for Total Fixed Costs, Total Variable
Costs, Total Costs, Total Sales Revenue are all selected

10. Insert Graph
With the data selected, then
Excel >> Insert >> Line >> Select the 1st graphic:

11. Config Graph 1
This graph appears (by magic – Excel magic):

12. Config Graph 2
RtClk of the graph and this menu appears:
>> Select the Select Data item

13. Config Graph 3 – Set X Axis
Select the Edit button here to set the labels for the X axis

14. Config Graph 4 – set X Axis
Enter the X Axis range by highlighting it

15. Config Graph 5 – Set X Axis
X axis has changed

16. Config Graph 6 – Set X Axis
X axis has changed now note the Series labels so you can change them!

17. Config Graph 7 – Change series labels
Edit each series and enter the label
– by selecting the field box and then pointing to the address

18. Config Graph 8 – Change series labels
The Legend will display the new labels

19. Config Graph 9 – Reposition Legend
Select Format Legend

20. Config Graph 10 – Reposition Legend
Change Legend to Top

21. Config Graph 11 – Delete Red series
Select unwanted series

22. Config Graph 12 – Angle the X labels
Change alignment of labels for X axis

23. Config Graph 13 – Change Font
Change font size of labels for axes
- Select axis >> RtClk >> set font size to 9

24. Config Graph 14 – Textboxes
Put titles etc in Text boxes and format them

25. Config Graph 15 – So far, so good
Where are we? Here is the present graph

26. Picture 1 – Copy Paste as Picture
Fit the graph (by dragging the size handles) to a grid that fits.
Then use the keyboard to select the underlying cells and Ctrl-C to copy
Then RtClk and select
the last Paste icons
= Linked Picture

27. Picture 2 – Linked Picture
The Linked-Picture is a Picture (Like a Print of the ‘Camera’ Copy)
Notice the handles:

28. Format Picture 1
Select 3-D Format – then the Top-Left Bevel icon

29. Format Picture 2
Select 3-D Format – then the Top-Left Bevel icon

30. Format Picture 3
Insert 3-D formatted shape behind graph and you get:

31. Finished
Application is linked all the way.
Change the parameters and the graph is
interactively responsive.

32. What is Breakeven?
At college it is easy to see that GP = Price less Cost
What does that mean?
Answer depends upon the elements of cost
and the final price
So it would be good to include the elements of price