Question: What is a break-even sales?

Break even sales is the dollar amount of revenue at which a business earns a profit of zero. This sales amount exactly covers the underlying fixed expenses of a business, plus all of the variable expenses associated with the sales.

What is a breakeven in business?

To be profitable in business, it is important to know what your break-even point is. Your break-even point is the point at which total revenue equals total costs or expenses. At this point there is no profit or loss — in other words, you break even.

Is the excess of sales over the break-even sales?

Margin of safety is calculated by subtracting break-even sales from actual or anticipated sales.

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