What is breakeven point？

The breakeven point is the level of sales at which a company neither makes a profit nor incurs a loss. In other words, it is the point at which total revenue equals total costs. At this point, the company is able to cover all of its expenses but has not yet generated any profit. The breakeven point is an important metric for businesses as it helps them determine the minimum amount of sales they need to make in order to cover their costs and avoid losses.