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Break even phase before any profits?
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<p id="isPasted">To put it simply, a break-even point is term used in business and economics, wherein the investment that you made in your business, inclusive of all costs, is repaid through the revenues, wherein you don't have a loss, or a profit either.</p><p>For example -</p><p>You spend five rupees to buy a pencil. Your friend is too ill to go to a shop to buy it. So, you sell it to him at five rupees. No profit. No loss. This precisely is a break-even point.</p>
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<p id="isPasted">It means the point at which your profit is zero (meaning you have neither a profit nor a loss).</p><p>For example, if you have a business with both fixed costs and variable costs (like a restaurant) with a small amount of sales you will lose money (not having enough revenue to cover fixed costs like rent, etc.). At a high level of sales you will make a profit. The break even point is the exact amount of sales you need to reach zero.</p><p>Another example is buying an out-of-the-money call option on some stock. If the stock price goes up …</p>
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<p>Break even analysis relates to the study of cost and return on investment in relation to the sales of a business unit. That point or level of sales at which the business makes no loss is termed as the break even point.</p>
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<p id="isPasted">Break even point signifies that an equilibrium is reached that is there is a balance between the two sides of an equation or two variables.</p><p>It could also mean that there is no profit and loss or no deficit and surplus</p>
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<p>According to Finance Strategists, the break-even point is the volume of activity at which a company’s total revenue equals the sum of all variable and fixed costs. The activity can be expressed in units or in dollar sales. The break-even point is the point at which there is no profit or loss.</p>
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