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Last Updated Sep 13, 2025

More than one line on the same graph Simplified Revision Notes

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More than one line on the same graph

1. Understanding Multiple Lines on a Graph

A graph can have more than one line to compare two or more situations.

Common Example:

  • Finance graphs compare expenses and income to determine profit or loss.
  • The point where the two graphs meet is called the break-even point.
    • At this point, expenses = income, meaning no profit or loss.
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2. Worked Example: Business Finances

Scenario:

David sells solar lamps for R68 each and resells them for R100 each.

  • Fixed costs: R12 000 (rent, utilities, etc.).
  • Variable costs: Buying the lamps (R68 per lamp).

Step 1: Identify Costs

  • Fixed costs remain constant at R12 000.
  • Variable costs increase as more lamps are bought.
  • Total expenses = Fixed costs + (Number of lamps × Cost per lamp).

Step 2: Income Calculation

  • Income = Number of lamps sold × Selling price per lamp (R100).

Step 3: Finding the Break-even Point

  • The break-even point occurs where total expenses = income.
  • The graph shows this happens at 220 lamps.

3. Activity: Lift Club Example

Scenario:

Pieter wants to start a lift club to cover petrol costs of R 1200 per month.

  • Each passenger pays R 20 per day.
  • He gains one new passenger each week.
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Key Questions & Answers:

  1. How many passengers are needed to break even?
  • Three passengers (R 1200 ÷ R 20 per day).
  1. What does the curved line show?
  • The cumulative contributions over time.
  1. When does Pieter break even?
  • End of the third week.
  1. Why is the expense line straight?
  • Fixed petrol cost of R 1200 per month.
  1. What is Pieter's monthly profit after break-even?
  • R 280 per month.
  1. Is this business profitable?
  • Yes, after 8 months, total profit = R 1680, even after a R 1000 car service.
infoNote

4. Key Takeaways

  • Multiple lines on a graph compare different variables (e.g., expenses vs income).
  • Break-even point: The point where revenue covers costs (no profit/loss).
  • Straight lines = Fixed costs, Curved lines = Accumulative data.
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