When the BEA is represented graphically, it is shown as the break even chart. The BEC shows the relationship of production costs and revenue to the volume of output. This relationship is determined by a BEP on a graph. The BEP is a specific level of output or volume of sales where total revenue and total costs of a firm are equal. It is the point of zero profit. This point is also known as no-profit, no loss or profit beginning point.

The graph represents a break even chart where the level of output is measured along the horizontal axis and revenue and costs on the vertical axis. The total revenue curve TR is drawn as a straight line, assuming that every level of output is sold at the same price. The fixed cost curve FC is drawn parallel to the horizontal axis. The variable costs are assumed as constant so that the total cost curve TC is also linear. The point of equality B of TR and TC curves is the break even point. B is the point of no-profit no-loss at OQ level of output. When the firm expands its output beyond OQ, it starts making profit. Thus the area to the right of point B is the profit zone. When the firm’s output falls below the OQ level, it incurs loss. So the area to the left of point B is the loss zone.