A break-even chart shows the total cost and total revenue expected at various sales volume levels.

Question

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A break-even chart is a graphical representation of the relationship between sales volume, costs, and revenue for a business. The chart shows the point at which total revenue equals total costs, or where the business breaks even. The chart provides a useful tool for businesses to make decisions about pricing, production, and sales volume.

A Break-Even Chart Shows the Total Cost and Total Revenue