break-even analysis

Definition

A calculation of the approximate sales volume required to just cover costs, below which production would be unprofitable and above which it would be profitable. Break-even analysis focuses on the relationship between fixed cost, variable cost, and profit.

Use break-even analysis in a sentence

Our break-even analysis was still going on and I wondered what the results of it would be and what it would mean for business.

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The break-even analysis was concluded and we were still in a favorable position due to our conservative projections and forecasts.

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The break-even analysis of our coke bottle price survey shows us that we need at least twenty people to buy one coke a month for us to not take a loss.

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breakaway gap cash flow break-even point