Question

At break even point total slope of sales line equal to

Answer 1

The sloping line hits the vertical hub at a separation underneath the zero benefit line equivalent to the fixed expenses. The incline of the line is equivalent to the margin percentage. The higher the rate of margin to sales, the more steeper the line.

The break even point or earn back the original investment level speaks to the business sum—in either unit (amount) or income (sales) terms—that is required to take care of aggregate costs, comprising of both fixed and variable expenses to the organization. Total profit at the break-even point is usually zero.