What is meant by the term break-even point?

A break-even point is where the level of output where total revenue equals total cost. This means that there is neither a profit or a loss.

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Mark has a business selling pens. He is trying to calculate his break even point for the current month. His fixed costs are £12,000. It costs him £2.10 to produce these pens and they sell for £2.70. How many pens does he need to sell?


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