breakeven point

  

Definition

Point in time (or in number of units sold) when forecasted revenue exactly equals the estimated total costs; where loss ends and profit begins to accumulate. This is the point at which a business, product, or project becomes financially viable.

Use breakeven point in a sentence

  • We had reached the breakeven point in our production and sales balance so we needed to increase output this quarter to maximize profits.

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  • When you have taken on a risky venture sometimes just getting back to the breakeven point can be considered a win.

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  • It costs John's business $500 to buy the 500 bags of garden mulch in wholesale, which he sold at $2.50 per bag which means he would need to sell 200 bags of garden mulch to reach the breakeven point.

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