Break-even analysis charts - Key takeaways

 A break-even chart is a method to carry out the break-even analysis.

 Break-even chart includes four variables: fixed costs, variable costs,

total costs, and revenue.

 To draw a break-even chart, we need to follow six steps: draw axes;

draw a line indicating fixed costs; draw a line indicating variable costs;
draw a line indicating total costs; draw a line indicating revenue; mark
the break-even point.

 A break-even chart can be an easy but time-consuming method to carry

out break-even analysis.

 It shows revenues and costs at different levels of production and allows

us to see the interdependence between fixed, variable, and total costs,
as well as revenue and quantity of units.

 A poorly drawn chart can give false results.