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

When costs equal income; no profit and no loss

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

$I = mx$; $I$ = income, $m$ = price/item, $x$ = items sold

$C = mx + c$; $m$ = cost/item, $x$ = items, $c$ = fixed costs

Costs that don't change with production

Income equals costs ($I = C$); profit equals zero

Origin (0, 0)

Fixed costs value ($c$)

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

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