What is breakeven?

Breakeven is when you don't make a loss or a profit.


Fixed cost divided by (selling cost minus variable cost)

Fixed Cost- When the price says the same through out

Variable Cost-

Variable costs are those costs that vary depending on a company's production volume; they rise as production increases and fall as production decreases. Variable costs differ from fixed costs such as rent, advertising, insurance and office supplies, which tend to remain the same regardless of production output.

Total Costs-

The total cost is the amount of money spent by a firm on producing a given level of output. Total costs are made up of fixed costs (FC) and variable costs (VC

what affects break even point?

Break even point can be affected by total costs and the selling price.

Why is breakeven point useful?

Its useful because it shows the point where they can make a profit.