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Break-Even Analysis

Definition - What does Break-Even Analysis mean?

A break-even analysis may be simply defined as the analysis of various things at a break-even point. That is the point where any project would stand at zero profit (no loss, no profit). This is a point where sales revenue is only covering the costs.

Justipedia explains Break-Even Analysis

For a company or any of its products to survive, it is important to at least be at the break-even point. It is an important analysis in evaluating the risk factor of any activity. This analysis calculates the relation between variable cost, fixed cost and profit.

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