We consider the following problem: given an undirected weighted graph $G=(V,E,c)$ with nonnegative weights,
minimize function $c(\delta(\mathscr{A})) - \lambda |\mathscr{A}|$ for all values of parameter $\lambda$.
Here $\mathscr{A}$ is a partition of the set of nodes,
the first term is the cost of edges whose endpoints belong to different
components of the partition, and $|\mathscr{A}|$ is the number of components.
The current best known algorithm for this problem has complexity $O(|V|^2)$ maximum flow computations.
We improve it to $|V|$ {\em parametric} maximum flow computations.
We observe that the complexity can be improved further for families of graphs which admit
a good separator, e.g. for planar graphs.