How Do You Spell BREAKEVEN GRAPH?

Pronunciation: [bɹˈe͡ɪkɛvən ɡɹˈaf] (IPA)

The term "breakeven graph" is commonly used in business and finance to refer to a graph that illustrates the point where a company's total revenue equals its total costs. The IPA phonetic transcription for "breakeven" would be /ˈbreɪkˌiːvən/, with emphasis on the first syllable and a long "e" sound in the second syllable. The word is spelled with a combination of "break" and "even", with the "a" and "e" sounds blending together in the first syllable. The graph can be visualized as a horizontal line intersecting a diagonal line, illustrating the point of breakeven.

BREAKEVEN GRAPH Meaning and Definition

1. A breakeven graph is a graphical representation that depicts the point at which a business or project reaches a state of breakeven.

   When an organization or venture reaches a breakeven point, it means that its total revenue is equal to its total costs. At this juncture, the organization does not incur any profit or loss. The breakeven graph illustrates this equilibrium point where the total revenue and total cost lines intersect.

   The breakeven graph typically consists of two lines: the total revenue line and the total cost line. The total revenue line portrays the revenue generated from selling a product or service. It starts from zero, indicating no sales, and slopes upwards, representing higher revenue as the number of units sold increases.

   The total cost line, on the other hand, showcases the relationship between the total cost incurred and the quantity produced. It starts from a positive value, indicating that costs are incurred even when no units are sold, and slopes upwards, indicating that the costs increase as production volume rises.

   By analyzing the breakeven graph, businesses can discern the level of output or sales needed to cover all expenses without making a profit. It provides a visual representation of the breakeven point, which aids decision-makers in determining the volume of sales required to generate profits and make informed business choices.

Etymology of BREAKEVEN GRAPH

The term "breakeven graph" is a combination of two words: "breakeven" and "graph".

1. Breakeven: The word "breakeven" comes from the combination of "break" and "even". "Break" refers to something that separates or divides, while "even" means equal or balanced. In business and finance, the breakeven point refers to the point at which total revenue equals total costs, resulting in neither profit nor loss. It signifies the level of sales or production where a company neither makes a profit nor incurs a loss.

2. Graph: The word "graph" derives from the Greek word "graphein", meaning "to write" or "to draw". It refers to a diagrammatic representation of data or information, typically consisting of axes, points, lines, and curves.