Break-even analysis

Break-even analysis
The amount of sales needed to just cover costs. Anything under this point is a loss anything above this point is a profit. Factors considered in break-even analysis are profit, variable costs and fixed costs.
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A break-even analysis is a valuable calculation that is helpful with both large and small business accounting.

Break-even analysis
An analysis of the level of sales at which a project would make zero profit.

Break-even analysis : Procedure used to tell the manager how profits will vary when production costs, sales volume, and selling price vary. It essentially is an indicator of the point where a firm's costs equal its expenses.

Typically, before investing in a business or new plant or equipment, a company does a break-even analysis to determine what sales revenues are needed in order to cover costs. Sales above the break-even point create profit.

The Break Even Point (BEP) is a dollar figure calculated that represents the level of sales required for a company to meet its Operating Expenses, thereby breaking even. BEP is also called Break-even analysis, Break-Even Sales, ...

break-even analysis A calculation of the approximate sales volume required to just cover costs,... break-even point The price at which an option's cost is equal to the proceeds acquired by exercising...

[CFTC][Harvey][NYMEX] break-even analysis An analysis of the level of sales at which a project would make zero profit. [Harvey] Analysis of the level of sales at which a project would break even.

See also: Analysis, Profit, Break, Sales, Point