Break-Even Chart - GCSE Business Definition

A Break-Even chart is a graphical representation used in business to show the point at which total costs and total revenue are equal. This is the level of output at which a business is neither making a profit nor a loss. It is a crucial tool for students studying GCSE Business as it helps them understand when a business will start to become profitable.

The chart typically displays fixed costs, variable costs, and total revenue, with the break-even point being where the total revenue line intersects the total costs line. It can also show the business's margin of safety. By analysing this chart, students can assess how changes in costs, price, and sales volume will affect the business’s break-even point and profitability.