ECONOMICS

Detailed explanation-1: -The break-even point (BEP) is reached when a business’s total revenue and total expenses are equal; the business is neither profitable nor in the red. The break-even point can be measured in several ways: Sometimes it’s expressed in terms of volume, other times in sales dollars and still other times as a target price.

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: -A breakeven point tells you what price level, yield, profit, or other metric must be achieved to not lose any money-or to make back an initial investment on a trade or project. Thus, if a project costs $1 million to undertake, it would need to generate $1 million in net profits before it breaks even.

Detailed explanation-4: -The break-even point is the point at which total revenue is equal to total cost. At this point, the profit is zero. (A particular company neither makes nor loses money at this point). There are two types of costs to consider: variable and fixed.