Breakeven analysis calculates the point at which revenues cover costs under different "what-if" conditions.

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Breakeven analysis is a financial tool used to determine the point at which total revenue equals total costs, indicating that an organization has neither made a profit nor incurred a loss. It helps businesses determine the level of sales needed to cover all of their costs and make a profit, and it can also be used to evaluate different pricing strategies or cost structures.

Breakeven Analysis Calculates the Point at Which Revenues Cover Costs