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In: Accounting

Cost volume & profit

What is break-even point ?

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Expert Solution

Break-even is a point at where the total revenue for a period earned by the company is exact same as the total costs incurred for a period it includes variable cost and fixed cost both and this break-even point helps management to set the target profit for a period.

Total revenue earned and total cost incurred for a period is same.

Rajesh Bhandari answered 3 years ago
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