Explain the significance and objective of a break-even chart and state the factors which would cause the break-even point to change. “The effect of a price increase is always to increase the P/V...

Explain the significance and objective of a break-even chart and state the factors which would cause the break-even point to change.

“The effect of a price increase is always to increase the P/V ratio, to bring down the break-even point and to widen the margin of safety.” Discuss.