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Break-even Point

Break-even Point

In general terms the break-even point is the point in a product's life cycle when the total of all investment costs are equal to the profit generated by the product. Additionally, a break-even point can be measured in units (how many do we have to sell to break even?) or in time (how long will it take to break even?). The accounting definition takes into account fixed costs, variable costs, quantity, and time. Check with your Finance or Accounting department when the actual calculations need to be made

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