Question

What is meant by the break-even point?

Answer 1

1. A manufacturing company may find itself in a no-profit, no-loss predicament.
2. It occurs when the total revenue (TR) equals the total cost (TC).
3. As a result, the break-even point is the moment at which a company's total cost equals its total revenue.
4. The break-even point of a business is the amount of output at which total revenue equals total cost.
5. (TR = TC) or `((TR)/Q = (TC)/Q)` or AR = AC.