Asked by Lauren Ferris on Jul 03, 2024
Verified
Define the break-even point of a company.
Break-even Point
The point at which total costs and total revenue are equal, resulting in no gain or loss for the business.
- Define the break-even point and its importance in business decision-making.
Verified Answer
TR
Trinity RobergeJul 09, 2024
Final Answer :
The break-even point of a company is the sales level at which the company neither earns a profit nor incurs a loss for the planning period.Alternatively stated,the company's total sales equals the total of variable and fixed costs.
Learning Objectives
- Define the break-even point and its importance in business decision-making.
Related questions
Assume a Company Sells a Given Product for $95 Per ...
If Yearly Insurance Premiums Are Increased, This Change in Fixed ...
The Data Required for Determining the Break-Even Point for a ...
Assume a Company Sells a Given Product for $33 ...
The Break-Even Point Is Where Total Sales Equal Total Variable ...