Break-even (economics)

1. Meaning of Break-Even Chart: The Break-Even Chart is a graphical representation between cost, volume and profits. No doubt, it is an important tool which helps to make profit planning.

The Break-Even Chart is a graphical representation between cost, volume and profits. Literally How to use a word that literally drives some people nuts. As a business, they must consider increasing the number of tables they sell annually in order to make enough money to pay fixed and variable costs. If the contribution is more than the fixed expenses, profit shall arise and if the contribution is loss than the fixed expenses, loss shall arise. The break-even point is a special case of Target Income Sales , where Target Income is 0 breaking even.

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The break-even point in economics, business—and specifically cost accounting—is the point at which total cost and total revenue are equal, i.e.

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Test your vocabulary with our question quiz! Examples of breakeven in a Sentence Recent Examples on the Web: Noun While the market expectation for U. BP boosts the bullish case for oil," 5 Nov. First Known Use of breakeven Noun , in the meaning defined above Adjective , in the meaning defined above. Learn More about breakeven.

Resources for breakeven Time Traveler! Explore the year a word first appeared. The financial method of calculating break-even, called value added break-even analysis , is used to assess the feasibility of a project.

This method not only accounts for all costs, it also includes the opportunity costs of the capital required to develop a project. In nuclear fusion research, the term "break-even" refers to a fusion energy gain factor equal to unity; this is also known as the Lawson criterion.

The notion can also be found in more general phenomena, such as percolation. In energy, the break-even point is the point where usable energy gotten from a process equals the input energy. In computer science , the term used infrequently refers to a point in the life cycle of a programming language where the language can be used to code its own compiler or interpreter.

This is also called self-hosting. 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 living , therefore leading to medical immortality, [4] barring accidental death. In soccer , the break-even requirement was adopted by UEFA with the purpose of prohibiting clubs from spending more money on transfers than they actually earn as businesses, i.

In the film industry , breaking even means grossing twice as much as the cost of the film. From Wikipedia, the free encyclopedia. For other uses, see Break-even disambiguation.