# What is meant by break even point

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## What is meant by breakeven point?

The breakeven point is

**the level of production at which the costs of production equal the revenues for a product**. In investing, the breakeven point is said to be achieved when the market price of an asset is the same as its original cost.## What is the break-even point formula?

To calculate the break-even point in units use the formula: Break-Even point (units) = Fixed Costs ÷ (Sales price per unit – Variable costs per unit) or in sales dollars using the formula: Break-Even point

**(sales dollars) = Fixed Costs ÷ Contribution Margin.**## What is meant by break-even point explain with diagram?

In its simplest form, the break-even chart is

**a graphical representation of costs at various levels of activity shown on the same chart as the variation of income (or sales, revenue) with the same variation in activity**. … At low levels of output, Costs are greater than Income.## What is break even Mcq?

Break-even point: It is

**the point of intersection of the total cost line and total revenue line**. There is neither profit nor loss at the break-even point. At the break-even point, the margin of safety ratio is 0.## What is the break-even point quizlet?

Break-even point is

**the point where revenues equal the total of all expenses including the cost of goods sold**. … The contribution margin per unit is the selling price per unit minus the fixed expenses per unit.