The break-even point is where profit is zero which where the contribution = fixed cost when using calculation method.
Q> in the example of the breakeven chart using the same figures in the lecture, the breakeven point was not where the fixed cost line was – why is that? I get that at the point where total revenue and total cost crosses there is zero-profit and hence a break-even point. It seems conflicting to the calculation method of break-even point being where contribution = fixed cost.
How would you draw the contribution on the break-even graph?