A break-even point defines when an investment will gener Breakeven analysis is performed to determine the value of a variable of a project that makes two elements equal, e.g. (A particular company neither makes nor loses money at this point). sales volume that will equate revenues and costs. Both the equation and contribution (formula) methods of break-even and target profit analysis are based on the contribution approach to the income statement What is Break-Even Analysis? Break Even Point Anal