Break Even Equation

now a line chart is created please right click the chart and select select data from the context menu see below screenshot

cost equation revenue equation and break even point

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note in order to draw any straight line graph two points are required

break even equation

break even equation

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however when taxes are required to be accounted for in the calculation we use the following equation

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fixed costs in your breakeven analysis

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now in the breakeven chart you will see the breakeven point occurs when the price equals to as below screenshot shown

the table shows the breakeven variations and the associated breakeven values that cause the npw to be zero the columns show the factors in the equation

next divide total fixed cost by each margin to compute the breakeven sales quantity notice that the higher the price the smaller the