Define break even point.

The break-even point (BEP) is the level of sales (in units or revenue) at which a business neither earns a profit nor incurs a loss. At this point, total revenue (TR) equals total costs (TC), meaning the contribution from sales exactly covers fixed and variable costs.

Mathematically, it can be expressed as: $$\text{Break-even point (units)}=\frac{\text{Fixed Costs (FC)}}{\text{Selling Price per Unit (P) - Variable Cost per Unit (V)}}$$ or in terms of revenue: $$\text{Break-even point (₹)}=\frac{\text{Fixed Costs (FC)}}{\text{Contribution Margin Ratio (P - V)/P}}$$

Graphically, it is the intersection point of the total revenue (TR) and total cost (TC) lines, where the profit line crosses the horizontal axis (zero profit zone).