oboloo Glossary

Break Even Point Units

oboloo Glossary

Break Even Point Units

The Break-Even Point Units is a concept used in business to determine the amount of output needed to cover costs. In other words, it is the number of units that must be sold in order to neither make a profit nor lose money. It is an important concept for businesses looking to develop strategies for cost control and pricing, as well as understanding when a product or service can sustain itself. Understanding the break-even point helps businesses optimize their investments and assess the potential profitability of a venture. Knowing how many units of a product or service need to be sold before breakeven can help managers achieve their desired financial goals.