Break Even Chart.

Q79. What is Break Even Chart? What are its uses and limitations?
Ans. The break even chart graphical representation of cost volume profit relationship.

It shows the following:

  1. The profitability of the undertaking at different level of output.
  2.  Break Even Point ( BEP).
  3.  Relationship between marginal cost, fixed expenses and contribution.
  4. Margin of safety.

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