In Business or Economics the Break Even Point (BEP) is the point at which the total of fixed and variable costs of a business becomes equal to its total revenue. At this point, a business neither earns any profit nor suffers any loss. The following graph explains all the concepts used to find out the break even point:

Scenario
Let’s consider an online Bakery that specialises in selling Birthday Cakes online. The owner of the bakery has estimated all the costs involved and grouped them into two categories:
- Fixed Costs: These costs will remain the same and do not vary depending on the number of cakes being sold. They include:
- The rent,
- Purchasing Cooking Equipment,
- Utility Bills,
- Website (Setup and maintenance/hosting).
- Variable Costs: These costs will vary depending on the number of cakes being sold. They include:
- Ingredients,
- Packaging,
- Delivery Fees.
The total costs of this online bakery consist of the fixed costs plus the variable costs and can be calculated using the following formula:
The revenues of this online bakery consist of the money received when selling cakes. They can be calculated using the following formula:
The question we are trying to answer is as follows:
We can answer this question using the following formula:
Coding Challenge
We have listed all the costs of our online bakery, both fixed and variable into a text file.
The average price per cake is ÂŁ16.00.
Use a Python program to extract the relevant information from the text file in order to:
- Calculate the sum of all fixed costs.
- Calculate the sum of all variable costs.
- Find out the break even point for this business: how many cakes will need to be sold to cover all the costs and start making a profit?
The text file we will use contains one line per cost as follows:
costs.txtTo complete this challenge you will need to read more about how to read through a CSV file.

Solution...
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Curling is a sport in which players slide stones on a sheet of ice towards a target area which is segmented into four concentric circles. Two teams, each with four players, take turns sliding heavy, polished granite stones, also called rocks, across the ice curling sheet towards the house, a circular target marked on the ice. Each team has eight stones. The purpose is to accumulate the highest score for a game; points are scored for the stones resting closest to the centre of the house at the conclusion of each end, which is completed when both teams have thrown all of their stones. A game usually consists of eight or ten ends.









In this challenge we will use file handling techniques to read through and access the content of different text files.
When your browser displays a webpage on screen it uses 3 different programming languages called HTML, CSS and JavaScript. We call the combination of these three languages “client-side web technologies”.

When your browser displays a webpage on screen it uses 3 different programming languages called HTML, CSS and JavaScript. We call the combination of these three languages “client-side web technologies”.






