Break-Even Chart
Graph showing relationship between sales volume, costs, revenue, profit.
Formula
Break-Even Output = Fixed Costs ÷ Contribution per Unit
Real World
A small coffee shop owner draws a break-even chart to show that selling 200 cups a day covers all fixed costs like rent and wages, with every cup beyond that generating profit.
Exam Focus
When drawing or interpreting a break-even chart, always label fixed costs, total costs, and revenue lines — missed labels lose marks.
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