Question

The graph below shows the annual cost (green) and sales (red) of a company. What is the break-even point?

Answer 1

The break-even point for the graph is at 11 units.

Step-by-step explanation:

Break-even point refers to the point on the graph where either of the parameters of the graph intercepts each other. The corresponding location of the position where the intersection occurs gives the break-even point.

In the graph annual cost is plotted in green on the Y axis, while the sales are plotted on x-axis in red.

When we observe the graph carefully, we find that two-line intercepts. When the point at which interception occurs is extended on the x-axis, the point is 11 units, which gives us the break-even units.

Hence the point is 11 units.