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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.
Shoe Shine is a local retail shoe shop located on the north side of Centerville. Yearly demand for a popular sandal is 500 pairs, and John Dirk, the manager of Shoe Shine, has been
underlying assumptions of breakeven analysis and the limitations of this.
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