The figure shown below illustrates 
Definitions:
Break-even Point
The point at which total cost and total revenue are equal, resulting in neither profit nor loss.
Break-even Sales
The amount of revenue required to cover total costs, both fixed and variable, at which point a business neither makes a profit nor suffers a loss.
Variable Cost
Overheads that move in sync with the volume of manufacturing or sales, covering labor and material costs.
Fixed Costs
Expenses that do not change with the level of production or sales in the short term, such as rent, salaries, and insurance.
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