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TeachMeFinance.com - explain breakeven point break-even point -- Volume of sales at which total costs equal
total revenues. Sales above this volume generate profits.
Break-Even Point -- The break-even point in any business is that point at which the volume of sales or revenues exactly equals total expenses -- the point at which there is neither a profit nor loss -- under varying levels of activity. The break-even point tells the manager what level of output or activity is required before the firm can make a profit; reflects the relationship between costs, volume and profits.
breakeven point -- the level of sales or production at which the total costs and total revenue of a business are equal.
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