Break Even

Quick Revise

A business breaks even if it does not make a profit or a loss

It is the point at which the business makes just enough revenue to cover their costs.

In other words profit = 0

Businesses must make a profit to survive.

To make a profit, revenue must be higher than costs.

Break even analysis can use a number of methods:

- Contribution method

- Break even chart

- Break even graph

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