The area between these two lines to the right of the break-ev en point represents a profit. If you sell more units than the break-even point you make a profit. These steps represent the way to calculate the break-even point using a graphical method. You can also calculate the break-even point algebraically. This method will be shown in the following examples.
Cost analysis provides the following information.
Perform a break-even analysis. We can plot these two points on our graph and draw a line connecting them. This line is our total revenue line . When we connect these two points we get a straight line parallel to the x-axis. Notice that this is just the fixed cost.