103k views
5 votes
Explain the term break-even point as used in short term decision marking.

User DDsix
by
4.0k points

1 Answer

4 votes

SOLUTION

Break-even point is the point or stage in your business when the total revenue or the total sales you have made becomes equal to your total expenses. At break-even, you have not started making profit, also you have incurred no loss. Typically, the first time you reach a break-even point means a positive turn for your business. It is a period of hope, that shows that there is possibility of you making profit from the business.

User Lambmj
by
3.8k points