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What is break even?

When there are low levels of sales, a business is not selling enough units for revenue to cover costs. Therefore a loss is made. As more items are sold, the total revenue increases and covers more of the costs. The breakeven point is reached when the total revenue exactly matches the total costs and the business is not making a profit or a loss. If the firm can sell more then it will be breaking into profit. 

Robyn C. A Level Business Studies tutor, GCSE Design & Technology tut...

5 months ago

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