ECONOMICS

Detailed explanation-1: -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-2: -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-3: -Break-even point is that point where the producer is able to recover the total cost of production through sale of output and incurs no profit or loss.

Detailed explanation-4: -Examples of Reducing the Break-even Point Decreasing the amount of fixed costs/expenses. Reducing the variable costs/expenses per unit. Improving the sales mix. Increasing selling prices (billing rates) without significantly decreasing the number of units sold.