A company produces and sells custom-made mug. The fixed cost are 4500 per month.variable cost per mug is 5 and the company sells each mug for 10. Plot the break-even curve on a graph?

To calculate the break-even point in units, we can use the following formula:

Break-even point (in units) = Fixed costs / (Selling price per unit - Variable cost per unit)

Break-even point (in units) = 4500 / (10 - 5)
Break-even point (in units) = 4500 / 5
Break-even point (in units) = 900

Therefore, the break-even point in units is 900 mugs.

To calculate the break-even point in amount, we can multiply the break-even point in units by the selling price per unit:

Break-even point (in amount) = Break-even point (in units) * Selling price per unit
Break-even point (in amount) = 900 * 10
Break-even point (in amount) = 9000

Therefore, the break-even point in amount is $9000.

Break-even point in units:

The break-even point is the point at which the total revenue equals the total cost.

Total revenue = Selling price per unit x Number of units sold
Total cost = Fixed cost + (Variable cost per unit x Number of units sold)

At the break-even point, Total revenue = Total cost

Selling price per unit x Number of units sold = Fixed cost + (Variable cost per unit x Number of units sold)

10x = 4500 + 5x
10x - 5x = 4500
5x = 4500
x = 4500 / 5
x = 900

Therefore, the break-even point in units is 900 mugs.

Break-even point in amount:

Break-even amount = Break-even point in units x Selling price per unit
Break-even amount = 900 x 10
Break-even amount = $9,000