Break-even
AccountingThe level of sales at which contribution exactly covers fixed costs and profit is nil.
The point past which a high-fixed-cost business becomes dramatically profitable, and below which it bleeds.
Every term is defined twice: once the way a filing would put it, and once the way somebody would explain it to you across a table. The second one is usually the one that sticks.
Showing 3 terms
The level of sales at which contribution exactly covers fixed costs and profit is nil.
The point past which a high-fixed-cost business becomes dramatically profitable, and below which it bleeds.
The price at which participants who bought since a reference point are collectively flat.
Underwater holders sell into the first rally back to their cost. That is what creates resistance there.
A price zone where buying interest has repeatedly been sufficient to halt declines.
A floor made of memory — people who regret selling there and people who want out at break-even.