Aspects of break-even analysis

IB Business Management: Aspects of break-even analysis

Combining the cost and revenues diagrams (see Unit 3.2) allows us to identify the break-even point, as shown in the diagram above. The sales quantity is shown along the x-axis, with a suitable unit of measurement (the number of oysters sold, in this case).The total fixed costs (TFC) line starts on the y-axis at the value of the fixed costs (£200 in this case). It is shown as a horizontal line because the fixed costs...

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