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SMALL BUSINESS GLOSSARY


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Current TermBreak-Even Point
Break-Even Point
The break-even point in any business is that point at which the volume of sales or revenues exactly equals total expenses—the point at which there is neither a profit nor loss—under varying levels of activity. The break-even point tells the manager what level of output or activity is required before the firm can make a profit and reflects the relationship between costs, volume, and profits.