Break Even Point Crushing Plant

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Break-even analysis is a measurement system that calculates the break even point by comparing the amount of revenues or units that must be sold to cover fixed and variable costs associated with making the sales.

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Or, to put another way, every $1 of incremental revenue above the break-even costs $0.55 and produces a “profit” of $0.45. In exactly the same way, every $1.00 of incremental revenue below the break-even produces a “loss” of $0.45. Second, the break-even point is dependent on two things: the height and the slope of the red line.

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Introduction to Break-even Point. A person starting a new business often asks, "At what level of sales will my company make a profit?" Established companies that have suffered through some rough years might have a similar question.

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