Break-even analysis is a financial tool which helps the company to determine after which stage they will be profitable. Break-even point is where the company neither make money nor losses money, but covers all the cost incurred.<\/p>\n\n\n\n
Breakeven is useful in studying the relationship between cost and revenue. The point at which total cost and total revenue are equal. After that, the no gain no loss situation, though opportunity costs have been paid and capital has received the risk-adjusted, expected return.<\/p>\n\n\n\n