Breakeven

Intermediate 💰 Finance / Accounting

Definition

The point where revenue equals total costs—neither profit nor loss, the accountant's neutral zone. It's the threshold between business success and business failure.

Example Usage

We calculated our breakeven point at 5,000 units per month.

Origin

Modern business terminology from cost accounting and operations research.

Fun Fact

Breakeven analysis is crucial for pricing decisions—if you can't breakeven at market prices, your business model is doomed.

Source: Cost analysis

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