December 17th, 2010 Comments off
|The analysis of revenues and costs in relation to the volume of production is known as break-even analysis. This relationship can be best shown in a break-even chart where the point at which total revenue equals total costs is the break-even point. This break-even point is where a company is neither making a profit or loss.|
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- Explain how to use graphical technique to draw a Break-even graph or Cost volume profit graph. What are the assumptions used in constructing the typical break even graph