break-even analysis definition

glossary: break-even analysis definition

Glossary: break-even analysis



Break-even analysis is a technique commonly used to assess expected profitability of a company or a single product. Break-even analysis determines at what point revenues equal expenditures based on fixed and variable. The break-even analysis is a standard financial analysis that measures general risk for a company by showing the sales level needed to cover both fixed and variable costs.

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Definition: break-even analysis

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