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let us look at the break-even analysis using graphical method on your screen you can see a graph with units sold on the x-axis and the dollar amount on the y-axis now we know that there are three main components involved in the break-even analysis the first one is fixed cost second is the variable cost and the third is revenue so let us understand how we can plot these three on this graph let us first take the fixed cost now we know that by definition fixed cost is the cost which does not vary by the volume of production so irrespective of the number of units sold the fixed cost will remain constant so on the graph if we have to plot the line basically the cost will be the same if the number of units sold is 10 20 30 40 50 or 60 so what this gives us is a straight line parallel to the x-axis so let us draw that line so lets say that the fixed cost is two thousand dollars so the line representing the fixed cost will be starting from two thousand dollars and parallel to the x-axis so t