Break-even point is defined as the point at which gains equals losses. In other words at break-even point there is no net loss or net gain. From a business point of view break-even point is the target point for profitability for any business in its early days.
It is essential for a business to reach its break-even point to make the business profitable.
Break-even point is a very important term to economists, business men and for that matter to most of us as business students. A clear understanding of break-even point is essential in business education.
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