ECONOMICS

Detailed explanation-1: -Therefore, the concept of break-even point is as follows: Profit when Revenue > Total Variable Cost + Total Fixed Cost. Break-even point when Revenue = Total Variable Cost + Total Fixed Cost.

Detailed explanation-2: -Where the revenue line crosses the total cost line is the break-even point-costs and revenue are the same. Everything shown below this point is loss, and everything above it is profit.

Detailed explanation-3: -The break-even point is the point at which total cost and total revenue are equal, meaning there is no loss or gain for your small business. In other words, you’ve reached the level of production at which the costs of production equals the revenues for a product.

Detailed explanation-4: -The fixed cost remains the same regardless. The point where the total costs line crosses the total sales line represents the breakeven point. This is the point of production where sales revenue will cover the costs of production.

Detailed explanation-5: -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.