The sales level at which a company neither earns a profit nor incurs a loss is the:

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The break-even point is the sales level at which a company neither earns a profit nor incurs a loss. This is a crucial calculation for businesses to determine their profitability and sustainability. The relevant range refers to the range of activity levels in which certain assumptions about cost behavior are valid. The margin of safety is the difference between actual or expected sales and the break-even point. The contribution margin is the amount of revenue left over after deducting variable costs. Step-wise variable level refers to costs that change incrementally at specific activity levels.

The Sales Level at Which a Company Neither Earns a Profit