ECONOMICS

Detailed explanation-1: -As illustrated in the graph above, the point at which total fixed and variable costs are equal to total revenues is known as the break-even point. At the break-even point, a business does not make a profit or loss. Therefore, the break-even point is often referred to as the “no-profit” or “no-loss point.”

Detailed explanation-2: -The break even point is defined as the volume of activity at which total revenues equal total costs, or in other words, where profit is zero. The break even point may also be thought of as the volume of activity at which the contribution margin equals the fixed costs.

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 break‐even point represents the level of sales where net income equals zero. In other words, the point where sales revenue equals total variable costs plus total fixed costs, and contribution margin equals fixed costs.

Detailed explanation-5: -Definition. Fixed cost is referred to as the cost that does not register a change with an increase or decrease in the quantity of goods produced by a firm. Variable cost is referred to as the type of cost that will show variations as per the changes in the levels of production. Nature of cost.