At this point in time all expenses have been accounted for so the product investment or business begins to generate profit. The break-even point is calculated by dividing the total fixed costs of production by the price per individual unit less the variable costs of production. The break-even point is the level at which total sales are equal to total costs.
In economy break even point is when you dont make a profit and you dont lose money either In other words your revenue is equal to your.
At this point in time all expenses have been accounted for so the product investment or business begins to generate profit. Note that in this formula. At the break even. If revenue is equal to cost then the profit is 0.