Describe the graphic method of break even analysis, Managerial Accounting

Graphic method of break even analysis or break even chart

The break even point can also be computed graphically. A break even chart is a graphical representation of marginal costing. The break even chart portrays a pictorial view of the relationships between costs volume and profit. It shows the break even point and also indicates the estimated profit or loss at various level of output. The break even [point as indicated in the chart is the point at which the total cost line and the total sales line intersect.

 

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