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Break even point


Break even point

Break even point. This term is often used in the Business. it means the point where no profit and no loss.
if some one start a business he has to incur some expenses to getting revenue. The point where revenue is equal to expenses is called the break even point.


The point where the line of revenue meet with the line of cost is the break even point. after crossing  this point the income is greater then cost and the company would be in profit.
you can see from the above example below this point the cost was greater then revenue and the company was in loss. after this point the income is greater then cost and the company is in Profit.