are the points of intersection between the total cost curve (TC) and a total revenue curve (R1, R2, or R3). The break-even quantity at each selling price can be read off the horizontal axis and the break-even price at each selling price can be read off the vertical axis. The total cost, total revenue, and fixed cost curves can each be constructed with simple formula. For example, the total revenue curve is simply the product of selling price times quantity for each output quantity. The data used in these formula come either from accounting records or from various estimation techniques such as regression analysis. Limitations The Break-even analysis is only a supply-side (i.e., costs only) analysis, as it tells you nothing about what sales are actually likely to be for the product at these various prices. It assumes that fixed costs (FC) are constant. Although this is true in the short run, an increase in the scale of production is likely to cause fixed costs to rise. It assumes average variable costs are constant per unit of output, at least in the range of likely quantities of sales. (i.e., linearity). It assumes that the quantity of goods produced is equal to the quantity of goods sold (i.e., there is no change in the quantity of goods held in inventory at the beginning of the period and the quantity of goods held in inventory at the end of the period). In multi-product companies, it assumes that the relative proportions of each product sold and produced are constant (i.e., the sales mix is constant). See also Cost-plus pricing Pricing Production, costs, and pricing Contribution margin References https://www.smgdmkinfo.com/2022/11/contoh-soal-break-even-point-dan.html?m=1 Further reading Dayananda, D.; Irons, R.; Harrison, S.; Herbohn, J.; and P. Rowland, 2002, Capital Budgeting: Financial Appraisal of Investment Projects. Cambridge University Press. pp. 150. Dean, Joel. "Cost structures of enterprises and break-even charts." The American Economic Review (1948): 153-164. Patrick, A. W. "Some Observations on the Break-Even Chart." Accounting Review (1958): 573-580. Tucker, Spencer A. The break-even system: A tool for profit planning. Prentice-Hall, 1963. Tucker, Spencer A. Profit planning decisions with the break-even system. Thomond Press: distribution to the book trade in the US by Van Nostrand Reinhold, 1980. External links Example of Break Even Point using Microsoft Excel MASB Official Website Breakeven Point Calculator Pricing Profit Management accounting