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The breakeven point in economics is the point at which cost or expenses and income are equal - there is no net loss or gain, one has "broken even".
The point at which a firm or other economic entity breaks even is equal to its fixed costs divided by its contribution to profit per unit of output, which can be shown by the following formula: - Fixed costs are expenses whose total does not change in proportion to the activity of a business, within the relevant time period or scale of production. ...
The break even point is also the point on a chart indicating the time when something has broken even, and is a general term for not having gained or lost something in a process. This article does not cite any references or sources. ...
The Contribution per Unit can be worked out using the following formula:
Contribution = Selling price per Unit - Variable Costs per Unit Variable costs or direct costs are expenses that change in direct proportion to the activity of a business. ...
This is one of the simplest yet least used analytical tools in management. It helps to provide a dynamic view of the relationships between sales, costs and profits. A better understanding of breakeven - for example expressing breakeven sales as a percentage of actual sales can give managers a chance to understand when to expect to breakeven (by lining the percent to when in the week/month this percent of sales might occur).
Other uses of the term
== In nuclear fusion research, the term breakeven refers to a fusion energy gain factor equal to unity, this is also known as the Lawson criterion.Bold text == The deuterium-tritium (D-T) fusion reaction is considered the most promising for producing fusion power. ...
The fusion energy gain factor, usually expressed with the symbol Q, is the ratio of fusion power produced in a nuclear fusion reactor to the power required to maintain the plasma in steady state. ...
This article or section does not cite its references or sources. ...
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The notion can also be found in more general phenomena, such as percolation, and is rather similar to the critical threshold. In energy, the breakeven point is the point where usable energy gotten from a process exceeds the input energy. In chemistry and other physical sciences, percolation is a type of filtering. ...
Critical threshold, a notion derived from the percolation theory, refers to a threshold, that summons up to a critical mass. ...
In computer science, the term refers to a point in the life cycle of a programming language where the language is capable of developing its own compiler or interpreter. This usually marks a transition from a "toy" language to a language usable in the real world. Computer science, or computing science, is the study of the theoretical foundations of information and computation and their implementation and application in computer systems. ...
A programming language is an artificial language that can be used to control the behavior of a machine, particularly a computer. ...
A diagram of the operation of a typical multi-language, multi-target compiler. ...
In computer science, an interpreter is a computer program that executes, or performs, instructions written in a computer programming language. ...
In medicine, it is a postulated state when the advances of medicine permit every year an increase of one year or more of the life expectancy of the livings, therefore leading to a sort of immortality (barring sudden death). 'Bold text' For the chemical substances known as medicines, see medication. ...
See also The break even point for a product is the point where total revenue received equals total costs associated with the sale of the product (TR=TC). ...
Definition Margin of safety (safety margin) is the difference between the intrinsic value of a stock (i. ...
Further Readings More about Breakeven and calculating Breakeven using Excel Goal Seek | 
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