Break-even analysis is a useful technique for determining how many units must be sold or how much sales volume must be achieved in order to break even: break-even is that volume of sales at which the business will neither make a profit nor incur a loss.

Question

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Break-even analysis helps businesses determine the point at which total revenues equal total costs, meaning no profit or loss is incurred.

Break-Even Analysis Is a Useful Technique for Determining How Many