A break-even chart can be used to illustrate changes in the break-even point when either costs and/or revenue change.

Changes in revenue (price of the good)

If the price of a good increases then the total revenue will increase for a given output. This is represented by the total revenue curve pivoting upwards. The new break-even occurs at a lower output level, while at the original output level (Q1) the profit level and the margin of safety will be higher. The opposite will occur for a reduction in price.

Changes in costs

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An increase in fixed costs will cause the cost line to shift in a parallel upwards direction. If this occurs, then the break-even point will occur at a higher required output level.

An increase in a variable cost will cause the total cost curve to pivot upwards. The curve will pivot because when the output level is zero then the total costs will remain the same. However, if output was higher then the variable cost would be higher, therefore, the total cost would be higher.

The increase in variable costs will cause the break-even point to occur at a higher required output level. The opposite occurs for a reduction in a variable cost.