The break-even point for a territory for a month is $1,000.If the salesperson generates $1,000 of profit the territory's direct costs are covered.

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Break-even point is calculated by dividing a salesperson's fixed costs by gross profit percentage. Break-even analysis determines how much sales volume a salesperson must generate to meet costs in a territory. The difference between cost of goods sold and sales is the gross profit on sales revenue. If profit equals $1,000 then the direct costs are met.

The Break-Even Point for a Territory for a Month Is