ENTREPRENEURSHIP

Detailed explanation-1: -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-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: -In accounting and business, the breakeven point (BEP) is the production level at which total revenues equal total expenses. A variable cost is an expense that changes in proportion to production or sales volume.

Detailed explanation-4: -In other to break-even, a company’s sales revenue must be equal to its total expenses. This means that the break-even point is the point at which sales revenues are equal to total costs. A company must earn more revenue than the amount necessary to reach the break-even point to achieve profitability.

Detailed explanation-5: -When you reach break-even point, you have no net loss or gain. In other words, you have reached the point where sales revenue exactly covers (and is therefore equal to) total costs, consisting of both fixed costs and variable costs.