break-even chart

A break-even chart visually shows when a business starts to make a profit versus when it incurs a loss. It plots total sales revenue and total costs on a graph, helping to identify the point where revenue exactly covers all expenses. This point, called the break-even point, is where the business neither gains nor loses money. The chart helps business owners understand how many units need to be sold to become profitable and assess the impact of changing sales or costs on overall profitability. It's a useful tool for planning and decision-making.