Question
Define the term 'break-even'.

Answer

The break even point is the production level where total revenues equals total expenses. In other words, the break-even point is where a company produces the same amount of revenues as expenses either during a manufacturing process or an accounting period. Since revenues equal expenses, the net income for the period will be zero.
The company didn’t lose any money during the period, but it also didn’t gain any money either. It simply broke even.
At the break even level,
Total Revenue = Total Expenses

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