breakeven point

breakeven point
The level of production, sales volume, percentage of capacity, or sales revenue at which an organization makes neither a profit nor a loss. The breakeven point may either be determined by the construction of a breakeven chart or by calculation. The formulae are:
breakeven point (units) = total fixed costs/contribution per unit;
breakeven point (sales) = (total fixed cost × selling price per unit)/contribution per unit.
See also: contribution

Accounting dictionary. 2014.

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