The break-even point is the minimum level of activity at which a company’s business becomes profitable. That is, the point at which the revenues obtained cover all the costs (fixed or variable) incurred by the company.

Beyond this threshold, the company is deemed to enter the enviable profit zone. The value of this threshold can be expressed in terms of volume produced, turnover received or time periods (in years, for example).

This video will show you all the ins and outs. Listen carefully and at the end you will see a button allowing you to access the entire exercise you will have to do.

After the exercise, you will have to watch the video that gives both the solution of the exercise, a worksheet with solution and additional information needed.

You can then move on to view step 4.5 on inflations.