ECONOMICS

Detailed explanation-1: -The number of units is on the X-axis (horizontal) and the dollar amount is on the Y-axis (vertical).

Detailed explanation-2: -Creating a break even graph The horizontal (X) axis shows your output in units while the vertical (Y) axis shows your costs and revenue. You plot a straight horizontal line of fixed costs across the graph, as these don’t change with the number of units produced.

Detailed explanation-3: -To calculate the break-even point in units use the formula: Break-Even point (units) = Fixed Costs ÷ (Sales price per unit – Variable costs per unit) or in sales dollars using the formula: Break-Even point (sales dollars) = Fixed Costs ÷ Contribution Margin.

Detailed explanation-4: -The chart plots revenue, fixed costs, and variable costs on the vertical axis, and volume on the horizontal axis.

Detailed explanation-5: -On the vertical axis, the breakeven chart plots the revenue, variable cost, and the fixed costs of the company, and on the horizontal axis, the volume is being plotted.