Melsoft Study

This is the point where your total revenue (sales or turnover) equals total costs. At this point there is no profit or loss—in other words, you 'break even'. Knowing your break-even point can help you make a decision about your selling prices, set a sales budget and prepare your business plan. Demand is an economic principle referring to a consumer's desire to purchase goods and services and willingness to pay a price for a specific good or service. Holding all other factors constant, an increase in the price of a good or service will decrease the quantity demanded, and vice versa. What is the concept of supply? Supply is a fundamental economic concept that describes the total amount of a specific good or service that is available to consumers. Supply can relate to the amount available at a specific price or the amount available across a range of prices if displayed on a graph. What is the concept of break-even? In business accounting, the break-even point refers to the amount of revenue necessary to cover the total fixed and variable expenses incurred by a company within a specified time period. How do you explain profit and loss? A profit and loss statement is a record of revenue and expenses incurred by a business in a given period of time. A profit and loss statement is also called a P&L, an income statement, a statement of profit and loss, an income and expense statement, or a statement of financial results.

KT0703 - Concept of profit, loss and breakeven