Break-even Point

The break-even point is the level of sales at which total revenue equals total costs, resulting in zero profit.

Break-even analysis helps in pricing, cost control, and planning by determining the sales volume required to cover fixed and variable costs.

- Used in treasury and financial management for funding, investment, and risk decisions.
- Used to evaluate cash flows, financing costs, and capital structure.

- Example: Finance teams use **Break-even Point** when planning funding needs and managing cash and risk.

- Why it matters: Supports liquidity and risk control and improves the quality of financing and investment decisions.