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Break-even point The Break-Even Point The break-even point (BEP) in economics, business —and specifically cost accounting —is the point at which total cost and total revenue are equal, i.e. " even ". In accounting and business, the breakeven point (BEP ) is the production level at which total revenues equal total expenses. What is Break- even Analysis? Break- even Analysis is an economic concept that is used to determine the number of units that needs to be sold by the company to cover the costs and gain no profits. It is the level of units that a company should at least reach in order to survive in the market. Break- even is a level where a company neither earns any profits nor suffers any losses. Basically, the break- even point tells us the units to be sold in order to cover costs. Key Takeaways from Break- even ... What is the break- even point and how do you calculate it? Why is it important for your business? Read on to learn about what this is and how it works.
