BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -What is Break Even Analysis? Break Even Analysis in economics, business, and cost accounting refers to the point in which total cost and total revenue are equal. A break even point analysis is used to determine the number of units or dollars of revenue needed to cover total costs (fixed and variable costs).

Detailed explanation-2: -The break-even point (BEP) in economics, business-and specifically cost accounting-is the point at which total cost and total revenue are equal, i.e. “even". There is no net loss or gain, and one has “broken even", though opportunity costs have been paid and capital has received the risk-adjusted, expected return.

Detailed explanation-3: -Attaining the break-even point means having your total costs equal your total revenue. Before you earn any profit with your business, the break-even point must be reached. The break-even point is when total costs are equal to total revenue.

Detailed explanation-4: -Total profit at the break-even point is zero.

Detailed explanation-5: -Break even sales is the dollar amount of revenue at which a business earns a profit of zero. This sales amount exactly covers the underlying fixed expenses of a business, plus all of the variable expenses associated with the sales.