Break-Even Point
- Social Sciences -
Economics & Business Dictionary
Definition
An economics and business concept defining a measure, method, or organizational practice used for analysis and decision-making. It specifies how information is generated or used to guide allocation of resources and evaluation of outcomes. It does not ensure correctness without clear assumptions, reliable inputs, and appropriate review of results.
Break-Even Point
Social Sciences Dictionary
Definition
The sales level (in units or revenue) at which total revenues equal total costs, producing zero accounting profit: TR = TC. For a single product with constant price and per‑unit variable cost, the break-even quantity is Q* = Fixed Costs / (Price − Variable Cost per unit) (i.e., FC / contribution margin per unit).