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The number of units produced and sold at which the company’s profit is zero—that is, revenues exactly cover total costs. If the company sells less units than the breakeven point, it will suffer a loss. In contrast, if it sells more units than the breakeven point, it will make a profit.

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The CFA Institute Investment Foundations Program covers the essentials of finance, ethics, and investment roles, providing a clear understanding of the global investment industry.


1. The number of units produced and sold at which the company’s profit is zero—that is, revenues exactly cover total costs. If the company sells less units than the breakeven point, it will suffer a loss. In contrast, if it sells more units than the breakeven point, it will make a profit.





 
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