The break-even point (BEP) or break-even level represents the sales amount—in either
unit (quantity) or revenue (sales) terms—that is required to cover total costs,
consisting of both fixed and variable costs to the company. Total profit at the break-even point is zero.
It might not seem like much of a business goal; it's
an important reference for your financial people. Your break-even points provide important benchmarks for long-term planning.