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. 

RC
Answered by Robyn C. Business Studies tutor

2681 Views

See similar Business Studies A Level tutors

Related Business Studies A Level answers

All answers ▸

What are the benefits of innovation within a business?


Asses the likely impact on a domestic firm of a global merger with a bigger MNC (Multi-national corporation) 10marks


How should I prepare for my AS business exam


Is a just in time (JIT) stock management system likely to benefit a clothing retailer?


We're here to help

contact us iconContact ustelephone icon+44 (0) 203 773 6020
Facebook logoInstagram logoLinkedIn logo

MyTutor is part of the IXL family of brands:

© 2025 by IXL Learning