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in this video Im going to show you how to do a break-even analysis using a graph theres a previous video on how to do one using an equation and you should watch that video before you watch this one in that video we saw that the break-even point is found using this equation which is total fixed cost divided by selling price minus the variable costs and just to go over that again and also to make an illustration for our graph Im going to use a simple example where the total fixed cost for a company is $100 they sell a product for $10 which cost them five dollars to make and if we do that as the break-even point we get 100 on five which is 20 now that 20 means that the business needs to sell 20 units in order to break even if I sold 19 units or less theyll be making a loss if they sold 21 units or more theyd be making a profit but in order to break even in order to make this project worthwhile they need to sell 20 products so now were going to put this information onto a graph for