A break-even point is a point at which an enterprise is either profitable or profitable, but all expenses have been covered. It's useful for figuring out the relationship between a variable and fixed costs, as well as sales. A business with low fixed costs would, on average, have a low break-even point of sale. There is no net loss or profit because opportunity costs have been charged and capital has taken the risk-adjusted, required return, and one has "broken even."
