Break-even-point definitions

The point at which income equals costs. Typically, before investing in a business or new plant or equipment, a company does a break-even analysis to determine what sales revenues are needed in order to cover costs. Sales above the break-even point create profit. The break-even point also may be used to refer to the price at which an investment can be sold so that the investor neither profits nor loses money.
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Alternative spelling of break-even point.
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(business, management) The point where total costs equal total revenue and the organization neither makes a profit nor suffers a loss.
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