Break-Even Analysis (HSC SSCE Mathematics Standard): Flashcards

When costs = income; no profit, no loss

$\text{Profit} = \text{Income} - \text{Costs}$

$I = mx$

Selling price per item

$C = mx + c$

Fixed costs (don't change with production)

$I = C$ (income equals costs), profit = zero

Intersection of income and cost lines

Where cost line is above income line (before break-even)

Where income line is above cost line (after break-even)