BREAK EVEN
The break even point for a business is where total revenue is the same as total costs. At this point the business the business is making neither a loss nor a profit
Break-even analysis separates costs into fixed or variables types, and is valuable because it calculates the point at which the business starts making a profit.
the normal method used to calculate the break-even point is:
fixed costs/(selling price - variable costs)
Contribution is the difference between selling price and variable costs.
A fixed cost is one that doesn't change depending on output.
A break even chart shows how the business goes from profit to loss.