The break-even point is the point at which total cost and total revenue are equal, i.e. "even". There is no net loss or gain, and one has "broken even"
Step-by-step explanation:
for example you want to run a hat business and it costs 10 dollars to produce each hat and a set price of 5000 dollars for the shop. and you sell each hat for 20 dollars. You would need to sell x number of hats in order to make what you spent. thats what break-even is. So basically you made back everything you spent and can bein to profit if that makes sense.
Break-even point is where the business is at an activity level (doing business) at which total cost = total sales, i.e. you have made enough income to cover the costs.
