Profit and loss
Profit
Profit is represented on a Break-even is the point at which revenue and total costs are the same, meaning the business is making neither a profit nor a loss. graph as anything above the break-even point (BEP). Profit is displayed as the shaded area between the revenue and total cost lines. The bigger this area is on a break-even graph, the more profit the business is making. In the below example, the area of profit is relatively small. This is because the BEP is relatively high. If the BEP were reduced, the area of profit would increase.
Loss
Loss is represented on a break-even graph as anything below the break-even point. Loss is displayed as the shaded area between the revenue and total cost lines, below the BEP. On the below example, the area of loss is large, representing a high level of sales required to break even.
