What is the break-even point?

Break-even point, that is, break-even point, refers to zero profit point or break-even point, which is the output when all sales revenue equals all costs. The calculation formula is: breakeven point = fixed cost ÷ (unit product sales revenue-unit product variable cost); Breakeven point = fixed cost ÷( 1- variable cost ÷ sales revenue).

With the breakeven point, when the sales revenue is higher than the breakeven point, the enterprise will make a profit, otherwise, the enterprise will lose money. The breakeven point can be expressed by sales volume, that is, the sales volume of breakeven point; It can also be expressed in terms of sales, that is, sales at breakeven point.