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By inserting different prices into the formula, you will obtain a number of break even points, one for each possible price charged. If the firm changes the selling price for its product, from $2 to $2.30, in the example above, then it would have to sell only (1000/(2.3 – 0.6))= 589 units to break even, rather than 714.

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To make the results clearer, they can be graphed.
Management Accounting, including: Cost Accounting, Net Present Value, Full Cost Accounting, Spend Management, Break Even Analysis, Break-even ... Fixed Cost, Throughput Accounting, Breakage
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Hephaestus Books To do this, you draw the total cost curve (TC in the diagram) which shows the total cost associated with each possible level of output, the fixed cost curve (FC) which shows the costs that do not vary with output level, and finally the various total revenue lines (R1, R2, and R3) which show the total amount of revenue received at each output level, given the price you will be charging.
The break even points (A,B,C) are the points of intersection between the total cost curve (TC) and a total revenue curve (R1, R2, or R3). The break even quantity at each selling price can be read off the horizontal,