Break-even analysis is:

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Break-even analysis is based on finding the point where a company's total revenue equals its total costs, which means that it has neither made a profit nor incurred a loss. It assumes a constant price and a constant average variable cost. While break-even analysis can be useful in the long run analysis of firms, it is also suitable for short-run simplified approximations. However, it is not the preferred method when the firm knows its cost and revenue functions.

Break-Even Analysis Is