Fixed cost 4500 per month, variable cost per mug is 5 and sells each mug for 10.plot the break-even curve on a graph showing the number of mugs sold against total cost and revenue?

To plot the break-even curve, we first need to calculate the total cost and total revenue at different levels of mugs sold.

Total Cost = Fixed Cost + (Variable Cost per mug * Number of mugs sold)
Total Revenue = Selling Price per mug * Number of mugs sold

Given:
Fixed Cost = $4500
Variable Cost per mug = $5
Selling Price per mug = $10

Let's calculate the break-even point where Total Cost equals Total Revenue:

Total Cost = Total Revenue
$4500 + ($5 * Number of mugs sold) = $10 * Number of mugs sold

Solving for the break-even point:
$4500 + $5x = $10x
$4500 = $5x
x = 900

So, the break-even point is at 900 mugs sold.

Now, let's plot the break-even curve on a graph:

- X-axis: Number of mugs sold
- Y-axis: Total Cost and Total Revenue

At 0 mugs sold:
Total Cost = $4500
Total Revenue = $0

At 900 mugs sold:
Total Cost = $4500 + ($5 * 900) = $4500 + $4500 = $9000
Total Revenue = $10 * 900 = $9000

Now, plot these points on the graph and connect them to form the break-even curve. The break-even curve will intersect at the break-even point of 900 mugs sold.

Fixed Costs: $4500 per month

Variable Cost per Mug: $5

Selling Price per Mug: $10

Break-Even Point:

The break-even point is the number of mugs that must be sold to cover the fixed costs.

```
Break-Even Point = Fixed Costs / (Selling Price per Mug - Variable Cost per Mug)
```

```
Break-Even Point = $4500 / ($10 - $5)
```

```
Break-Even Point = 900 mugs
```

Graph:

[Image of a graph with the x-axis labeled "Number of Mugs Sold" and the y-axis labeled "Total Cost/Revenue"]

Plotted Lines:

- Total Cost: A straight line starting from (0, 4500) and increasing with a slope of 5.
- Total Revenue: A straight line starting from (0, 0) and increasing with a slope of 10.

Break-Even Point: The point (900, 9000) where the Total Cost and Total Revenue lines intersect.

Interpretation:

The graph shows that:

- If the company sells less than 900 mugs per month, it will incur a loss.
- If the company sells exactly 900 mugs per month, it will break even (i.e., cover its costs).
- If the company sells more than 900 mugs per month, it will make a profit.