Break-even Point


Definition: the Break-even Point is the point at which the gains equal the losses. A BEP defines when an investment will generate a positive return. The point where sales or revenues equal expenses. Or also the point where total costs equal total revenues. There is no profit made or loss incurred at the break-even point. This is important for anyone that manages a business, since the break-even point is the lower limit of profit when prices are set and margins are determined.
The BEP is determined or calculated by a Break-even Analysis.


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