ECONOMICS

Detailed explanation-1: -The number of units is on the X-axis (horizontal) and the dollar amount is on the Y-axis (vertical). The red line represents the total fixed costs of $100, 000. The blue line represents revenue per unit sold. For example, selling 10, 000 units would generate 10, 000 x $12 = $120, 000 in revenue.

Detailed explanation-2: -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.

Detailed explanation-3: -A breakeven chart is a chart that shows the sales volume level at which total costs equal sales. Losses will be incurred below this point, and profits will be earned above this point.

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: -Break-even point in units = Fixed costs ÷ Contribution margin per unit. Your break-even point in units will tell you exactly how many units you need to sell to turn a profit. If you’re able to sell more units beyond this point, you’ll be making a profit.