The breakeven Point

          We obtain an overview of decision models by examining the interrelationships of changes in costs, volume, and profits-sometimes too narrowly described as breakeven analysis. The breakeven point is often only incidental in these studies. Instead, the focus is on the impact upon operating income or net income of various decisions that affect sales and costs. the breakeven point is that Point of activity (sales volume) where total revenues and total expenses are equal; that is, there is neither profit nor loss. The terms net income and net profit are used interchangeably.