Costs, scale of production and break-even analysis — practice question

BPT makes bicycles in country A using batch production. The Operations Director is drawing up a break-even chart for one of BPT’s bicycles, as shown in Fig. 1.1. The directors are considering ways to reduce BPT’s break-even level of output. BPT brings in 60% of its raw materials and sells its bicycles to 8 countries overseas. The Managing Director wants to find out how a depreciation in country A’s exchange rate and the introduction of import tariffs could affect BPT. Fig. 1.1 is headed: "Partly completed break-even chart for one of BPT’s bicycles". The vertical axis is labelled "costs and revenue $" and runs from 0 to 300 000. The horizontal axis is labelled "output in units" and runs from 0 to 300. There are two straight lines on the chart labelled X and Y. Line X begins at about $50\,000$ when output is 0 and rises steadily. Line Y starts at $0$ at output 0 and rises more steeply than line X.