The breakeven point represents the minimum number of units a company must sell before it earns a profit.

Question

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The breakeven point is the point at which a company's total revenue equals its total expenses, resulting in neither a profit nor a loss. Any units sold beyond the breakeven point will result in a profit for the company. Therefore, the breakeven point represents the minimum number of units a company must sell before it earns a profit.

The Breakeven Point Represents the Minimum Number of Units a Company