financial_analyzer.plot_breakeven_point

Module Contents

Functions

plot_breakeven_point(fixed_costs, ...)

Plot a break-even point graph which shows the relationship between total cost,
financial_analyzer.plot_breakeven_point.plot_breakeven_point(fixed_costs, sales_price_per_unit, variable_cost_per_unit, max_units)[source]

Plot a break-even point graph which shows the relationship between total cost, total revenue, and number of units sold. This plot will include 3 lines, one for Total Revenue, one for Total Cost (Varialbe + Fixed), and one for Fixed Cost.

Parameters:

  • fixed_costs (float) – Total fixed costs in the problem, given as a float.

  • sales_price_per_unit (float) – The selling price of each unit in the problem, given as a float.

  • variable_cost_per_unit (float) – The variable cost of each unit in the problem, given as a float.

  • max_units (int) – The maximum number of units to include in the plot, given as an integer.

Returns:

This function does not return a value. It displays a plot.

Return type:

None

Examples

Context: Want to visualize cafe sales. Your fixed costs are $1,000, each coffee sells for $5, the variable cost for each cup is $2. To visualize (altair plot) your costs and revenue up to selling 500 cups, you use this function.

>>> fixed_costs = 1000
>>> sales_price_per_unit = 5
>>> variable_cost_per_unit = 2
>>> max_units = 500
>>> plot_breakeven_point(fixed_costs, sales_price_per_unit, variable_cost_per_unit, max_units)

This will display an altair plot with the total cost, fixed cost, and total revenue lines, illustrating the point where they intersect as the break-even point.