Therefore, the net income is \(\$ 1,000-\$ 1,000=\$ 0\) no money is lost or gained at this point.įollow these steps to calculate the break-even point in total revenue dollars: The graph illustrates that the break-even point occurs at an output of 10 units. The purpose of break-even analysis is to determine the point at which total cost equals total revenue. The green line plots the total revenue at all levels of output. ![]()
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