How do you Calculate the Breakeven Point?

The breakeven point is the point where the business is earning enough sales revenue to cover costs.

The table below shows how total costs must be equal to sales revenue at the breakeven point.

The graph of these figures shows the breakeven point.


what is the breakeven point


The graph shows this point where the lines of total costs and sales revenue intersect- this is the breakeven point.


what is breakeven

Visually the graph shows the breakeven point, but a formula is an easier option.


breakeven point calculation
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