Break Even Analysis in economics, business, and cost accounting refers to the point in which total cost and total revenue are equal. A break even point analysis is used to determine the number of units or dollars of revenue needed to cover total costs (fixed and variable costs).
What Is Profit? Profit is the income left over after the cost of production is paid for with revenue. The Dummies website explains it as the difference between total revenue and total cost.
Total cost = Fixed cost + Variable cost. Total Revenue = Price x Quantity. It increases with increase in sale. It shows total cost of producing a commodity.
Revenue is the total amount of money received by the company for goods sold or services provided during a certain time period. Cost of Goods Sold are the direct costs attributable to the production of the goods sold by a company.