ECONOMICS

Detailed explanation-1: -The break-even analysis uses three assumptions to determine a break-even point: fixed costs, variable costs, and unit price. Fixed costs and variable costs are both included in this glossary, and unit price is the average revenue per unit of sales.

Detailed explanation-2: -Profit earned following your break even: Once your sales equal your fixed and variable costs, you have reached the break-even point, and the company will report a net profit or loss of $0. Any sales beyond that point contribute to your net profit.

Detailed explanation-3: -The break-even price covers the cost or initial investment into something. For example, if you sell your house for exactly what you still need to pay you would leave with zero debt but no profit.

Detailed explanation-4: -The level of output at which total revenue is equal to total costs of porduction.