How to Read a Break-Even Chart
A break-even chart plots three lines against units sold: Fixed Costs (a horizontal line), Total Costs (fixed + variable, rising line), and Total Revenue (a steeper rising line from zero). The break-even point is where Total Revenue intersects Total Costs. Below this intersection is the loss zone; above it is the profit zone. The gap between the lines widens as you sell more units — that's your growing profit. This visual makes it easy to see how sensitive your profitability is to volume changes.