ECONOMICS

Detailed explanation-1: -In accounting, the breakeven point is calculated by dividing the fixed costs of production by the price per unit minus the variable costs of production. The breakeven point is the level of production at which the costs of production equal the revenues for a product.

Detailed explanation-2: -Break-even is the point at which revenue and total costs are the same, meaning the business is making neither a profit nor a loss. The break-even level of output informs a business of how many products it needs to sell to reach the break-even point (BEP).

Detailed explanation-3: -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-4: -The breakeven number of units, as the name suggests, is the number of units of goods or services that a company needs to sell in order to break even, or in other words, to suffer no financial losses but also make no profit.

Detailed explanation-5: -When the total revenue is equal to the total cost, the firm is not making any additional profit but is also not in loss. The earnings are equal to the expense hence it is called the break even point.