## What you’ll learn to do: calculate the break-even point, where profit will be equal to \$0, using information from financial statements

In this section you will learn to calculate the point where the amount of income you earn results in neither a profit nor a loss—and “breaks even.”

The specific things you’ll learn in this section include:

• Define the break-even point
• Differentiate between fixed and variable costs
• Calculate the break-even point
• Calculate the contribution margin
• Calculate the contribution margin ratio
• Calculate the margin of safety