Question

What do you understand sem break even point .

Answer 1

Answer:

The Break-Even Point. A company breaks even for a given period when sales revenue and costs incurred during that period are equal

Explanation:

Thus the break-even point is that level of operations at which a company realizes no net income or loss. ... Variable Costs are volume related and are paid per quantity or unit produced.

Answer 2

In Economics and Accounting,break even point refers to a particular position in any business where the total cost/expense of production and total revenue obtained from output sale are equal.

Explanation:

Break even point is a particular situation in any business operation in which the overall or total production cost is equal to the total revenue generated from the sale of its products or services in a particular period of time.This implies that the firm or business organisation is at "break even" point or neither earning any overall profit or incurring total loss.In other words,it also signifies that the overall revenue obtained by the firm is exactly sufficient to cover the total production cost including the both the fixed cost and variable cost of production.As a result it is earning or incurring zero profit or zero loss in business.