Geogebra Lesson: Dynamic Breakeven Graphs

Grades: 7-10
Objective Goal: To be able to change the revenue and cost lines in order to recognize the changes
to the breakeven number. Additionally, identify the changes to the overall profit.
Breakeven: can be found when the revenue line meets the cost line.
Variable Cost: usually depends on the company’s production volume
Fixed Cost: tends to remain the same regardless of the production output
Profit = Revenue – Total Costs
= Sale Price*x – (Fixed + Variable Cost*x)
= Sale Price*x – Fixed Costs – Variable Cost*x ………...
Let “x” = some number
CREATING A DYANMIC BREAKEVEN GRAPH ON GEOGEBRA
1. In the input line write in the each variable equaled to 1: Fixed Cost, Sale Price, Variable Cost
Example 1: SalePrice=1
Example 2: FixedCost=1
 Notice that there is NO SPACE between the words

2. Click on the insert input box

3. Inside the Caption write Fixed Cost  Then in Linked Object pick “FixedCost=1”  Repeat
with the remaining two variables

4. Next insert into the input line: “y = SalePrice*x” and then “y=FixedCosts+VariableCost*x”
 You can also choose a color for Revenue and Total Cost line through OBJECT
PROPERTIES

5. Then hover your mouse on either the x-axis or y-axis  RIGHT click  Click on the
“Graphics…”

6. Change the “x Max” to 2,000 and “y Max” to 30,000

 You can always make it bigger later
7. For now insert these numbers into the variable boxes:

8. Next, insert an intersecting point between the two lines.

9. Then Click the “Perpendicular Line tool”  Click point A and the x-axis
 This will allow for an easier view to see your Breakeven!!

10. Let’s make the Break Even number come up as a dynamic text box. Click the “ABC” tool 
then Click “insert text”  In the Edit section type Break Even  Then Click the “Objects”
and pick your perpendicular line.
 In the sample version my break even perpendicular line was “f” … maybe different for
your version
11. In the Input line in Geogebra, insert the profit line ( HINT: we mentioned before on the
worksheet)

 Make sure to Name the line: Profit

 Color tab  Pick Blue

12. Input: “NumberofProducts=1”  Click input box  Caption: Number of Products  Link
the object to “NumberofProducts”

13. Make an intersecting point with the Number of Products and Profit lines. This should be Point
“B”
14. Now Using the Perpendicular tool make a line from Point B to the y-axis.
15. Repeat the Steps from 11, but now instead write Profit.

 WE HAVE JUST CREATED A

VERSATILE DYNAMIC BREAK
EVEN GRAPH!
Practice Problems:
1. Suppose you invest $10,410 in equipment to manufacture a new board game. Each game
costs $2.65 to manufacture and sells for $20 how many board games must you make and
sell before your business breaks even?

2. Pepsi Company produces a single article. Following cost data is given about its product:
Find the breakeven units and dollars. What’s the minimum Pepsi can sell each unit?
Selling Price per Unit 40

Marginal Cost per Unit 24

Fixed Cost Per Annum 16000

3. Consider Lugi and Mario’s Pizza Delight Restaurant, which only sells pepperoni pizza.
The expenses are shown below:
Fixed Costs Variable Cost Per Pizza
General Labor $1,500 Flour $0.50
Rent $3,000 Yeast $0.05
Insurance $200 Water $0.01
Advertising $500 Cheese $3.00
Utilities $450 Pepperoni $2.00
Total Total
a) What is the minimum price Lugi and Mario can charge for each pizza?
b) What is their contribution margin if each pizza is sold at $12?
c) Calculate the Break Even Sales Units and Break Even Dollar Figures. Use the
Geogebra graph and show your work.

4. some pros and cons of the dynamic Geogebra graph? Think about the cons and how can
we improve our graph. (Hint: Think about realistic real world constraints)