The break-even point is the amount of a product that must be sold to cover a firm's fixed and variable costs.

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The break-even point is indeed the point where the total revenue equals the total cost, which includes both fixed and variable costs. At this point, the company has not made a profit or loss. Therefore, if the company sells more than the break-even quantity, it will start to make a profit, and if it sells less, it will suffer a loss.

The Break-Even Point Is the Amount of a Product That