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Break Even

1. To make the sales or revenues necessary to cover costs and prevent a firm from operating at a loss. The breakeven may be relatively stable or it may fluctuate, depending on the company or industry. Companies with high breakevens tend to have large fluctuations in earnings from year to year.

2. To sell a security at a price that causes the seller to neither make a profit nor lose money on the sale.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved


1. The level of output or sales necessary to cover fixed expenses. Companies in industries that have high fixed costs and, consequently, high breakevens, such as automobile and steel manufacturing, are likely to exhibit large fluctuations in earnings.
2. The price at which a security position can be closed out with no profit or loss.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.
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Knowing what break even point analysis is and does, credit managers can speak knowledgeably about this concept with their customers.
This two- to three-year phase begins with the idea and lasts until there is 60 to 70 percent occupancy or until the incubator reaches a break even point (Allen, Gorham, and Peake, 1987).
per kg, Indonesia shrimp suppliers could reached only the break even point. Thailand is the world's largest exporter of shrimps and it is one of six major suppliers punished by the United States with surcharge for alleged dumping.