Thousands
Break Even Analysis Chart
$900
$800
$700
$600
$500
Fixed Cost
$400
Variable Cost
$300
Total Cost
$200
Income
$100
Jul/12
Jun/12
May/12
Apr/12
Mar/12
Feb/12
Jan/12
Dec/11
Nov/11
Oct/11
Sep/11
Aug/11
$0
The Dresser’s fixed cost includes employee payment, clothes cost, laundry,
advertise expense, insurance, utility, and taxes. Variable cost is only one facet, a
delivery fee. The Dresser’s income depends on month, because some months have
big event such as Christmas which makes people need special clothes. The Dresser
will reach break-even point when the entire income becomes $2,000,000, so it will
be the time between November and December 2011.