Breify explain the idea of breakeven-what is it?

Answer 1

NO LOSS -- NO GAIN

Answer 2

In strict terms, this is where fixed costs of production is covered by the contribution margin per unit sold.

Mathematically the units necessary to hit break even can simply be worked out by: Fixed Costs/CM.

(Contribution Margin here is the difference between the selling price and the variable cost of an item.)

Answer 3

THIS MEANS (IN BREIF)

THE AMOUNT EARND FROM SALES IS THE SAME AS THE AMOUNT YOU PURCHASED FOR

So if you have been running a business and you buy 100 items of stock at £1 each you spend £100

Now you swll 50 of the items for £1.50 each you get £75.00 but then you can't shift anymore items you have to reduce them to £0.50 you get £25.00 therefore you now break even as you have sold all your items but have made no profit!

Hope this helps Xx

Answer 4

Break even is just what it sounds like. When you are able to sell something and get the amount you purchased it for and any expences you put into it and walk away with that amount of money.

Answer 5

To * break-even*
Means;
*you have neither lost nor gained
OR
*Your income is exactly the same as your expences.
or
*you sold your car,
for the exact same amount that you paid for it .

Break -Even is -----
Just a short way, of saying, you have neither lost nor gained .

>^,,^<

Answer 6

Its that point at which you recover all the cost of production and manufacture, or recover the full cost of an investment. When you exceed this point you are in profit