Construct a break-even graph and evaluate its usefulness as a finance tool.

Break-Even is a tool used by businesses to project the amount of units they have to sell before they break-even, in other words before they have recouped their investment. To calculate this number, 3 figures must be known. Firstly, the price at which the business is planning to sell the product at. Secondly, the variable cost, these are the cost of making each product (cost of materials/packaging). Lastly, the fixed costs, any and all other costs involved in the running of the business (rent/utilities/wages). Once we have these figures, we can start to calculate the break-even point. The equation for the break-even point is given by the equation: Total Revenue= Total Cost. This can be expanded upon by: Price x Quantity = (Variable Cost x Quantity) + Fixed Cost. We then substitute the variables with the given figures and then solve for Q, which will tell us the number of units the business has to sell to break-even. Once done, we substitute Q in the original equation for the value we just found to calculate how much money producing said units would raise, at which point we have the break-even point and can now plot the tool on a graph for a more enriched analysis.  It benefits businesses in its simple design and straightforward analysis, highlighting how many units a business has to sell in order to recoup their losses. However, in its simplicity it becomes primitive as it uses many assumptions to support its constructions, the biggest of them all being that it assumes that every product made will be instantly sold without any variation in price. Secondly, any variation in the pricing of the product or variation in costs (be it in the cost of making the product or cost of rent/utilities/wages) and the graph must be reconstructed again. As such, the break-even tool is a good starting point for businesses to project a timeline of when they'll start recouping their losses and making profit, but it should be used in conjunction and not in isolation with other financial tools (i.e. Cash Flow forecast, Balance Sheet, Income Statement) to provide businesses a more whole-rounded analysis.