What is Breakeven point?
The number that tells you whether a price works. Below it every sale loses money no matter how many you make.
Money
The definition
The level of sales at which total revenue equals total costs, so profit is zero.
An example
Fixed costs of $3,000 a month, and each sale contributes $25 after its own costs. Breakeven is 120 sales a month.
Where it comes up
This shows up in the breakeven calculator on this site.
Related
Questions people ask
What is Breakeven point?
The level of sales at which total revenue equals total costs, so profit is zero. The number that tells you whether a price works. Below it every sale loses money no matter how many you make.