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Financial Glossary

Break-even Analysis

What is Break-even Analysis?

Break-even analysis calculates the point where total revenue equals total costs, meaning no profit or loss is made.

what is accounts payable (ap)?

How to Calculate Break-even Point?

Formula:

Break−even Point=Fixed CostsSelling Price−Variable Cost per UnitBreak-even\ Point = \frac{Fixed\ Costs}{Selling\ Price – Variable\ Cost\ per\ Unit}

📌 Related: Profit Margins | Budgeting

 

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