Question

Definition of break even point?

Does break even point mean:
The month the company makes money rather than losing it
or
The month in which total net profit surpasses zero?

1 year ago - 2 answers

Best Answer

Chosen by Asker

Revenue that takes you out of being in the red. For example, a company buys 1000 items at a cost of 5.00 each = $5000.00 The company sells 500 at $10.00 each, at that point you broke even & the remaining will be profit.

1 year ago

Other Answers

The month in which total net profit surpasses zero.
It's basically the point where you start to make a profit (minus the expenses and such)

Source(s)

by Twinkle - 1 year ago