break-even point

(noun)

The point where total costs equal total revenue and the organization neither makes a profit nor suffers a loss.

Related Terms

  • Opportunity Costs

Examples of break-even point in the following topics:

  • Break-Even Analysis

    • The break-even point is the point at which costs and revenues are equal.
    • In economics and business, specifically cost accounting, the break-even point is the point at which costs or expenses and revenue are equal - i.e., there is no net loss or gain, and one has "broken even" .
    • Thus the break-even point can be more simply computed as the point where Total Contribution = Total Fixed Cost:
    • The break-even point is one of the simplest analytical tools in management.
    • Analyze the concept of break even points relative to pricing decisions
  • Product Life-Cycle Curve

    • The two charts and demonstrate the break-even point reached during the product life cycle as well as sales and profits in general.
    • The diagram shows when a product is expected to break even once it is introduced into the market.
  • Growth

    • Profits begin to be generated, though the break even point is likely to remain unbreached for a significant time--even until the next stage, depending on the cost and revenue structures.
  • Business Analysis

    • Ultimately, profitability and the estimated break-even point can be derived.
  • Profit

    • In target volume and target revenue calculations, managers go beyond break-even analysis (the point at which a company sells enough to cover its fixed costs) to determine the level of unit sales or revenues needed to cover a firm's costs and attain its profit targets.
  • Rebates

    • Large stores often work in conjunction with manufacturers, usually requiring two or even three separate rebates for each item.
    • Some rebate programs offer several payout options to consumers, including a paper check, a prepaid card that can be spent immediately without a trip to the bank or even PayPal payout.
    • In the UK, rebates are less common, with manufacturers and retailers preferring to give discounts at the point-of-sale rather than requiring mail-in or coupons.
    • Rebates offer retailers the benefit of giving customers a temporary discount on an item, to stimulate sales, while allowing it to maintain its current price point.
    • New companies that want to break into a market can offer substantial rebate savings on their new product as a means of capturing a customer's attention.
  • Conclude with Action Plan

    • Financial Forecast-assumptions, budgets, use of funds, monthly pro-forma, contribution margin analysis, break even analysis, prediction of future scenarios with corresponding action plan
    • How touch point information, input from the customer, flows through the business is paramount to success
  • Scanning and Analysis

    • A trend break could be a value shift in society, a technological innovation that might be permanent, or a paradigm change.
    • Issues are often forerunners of trend breaks.
    • A trend break could be a value shift in society, a technological innovation that might be permanent, or a paradigm change.
    • The segmentation of the macro environment according to the six presented factors of the PESTEL analysis is the starting point of the global environmental analysis.
  • Terms Used to Describe Price

    • Dollar General is a general store or "five and dime" store that sets price points only at even amounts, such as exactly one, two, three, five, or ten dollars (among others).
    • The price of an item is also called the price point, especially where it refers to stores that set a limited number of price points.
    • For example, Dollar General is a general store or "five and dime" store that sets price points only at even amounts, such as exactly one, two, three, five, or ten dollars (among others).
    • Other stores (such as dollar stores, pound stores, euro stores, 100-yen stores, and so forth) only have a single price point ($1, £1, 1€, ¥100), though in some cases this price may purchase more than one of some very small items.
    • From a customer's point of view, value is the sole justification for price.
  • Perceptual Mapping

    • Perceptual maps commonly have two dimensions even though they are capable of having several.
    • Many perceptual maps also display consumers' ideal points.
    • This diagram shows a study of consumers' ideal points in the alcohol product space.
    • Areas where there is a cluster of ideal points (such as A) indicates a market segment.
    • Areas without ideal points are sometimes referred to as demand voids.
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