Break-even price and output refer to the minimum level of sales revenue that a company must generate to cover all of its costs, resulting in zero profit or loss. Break-even analysis is a common tool used to determine a business's ability to achieve profitability. Here's how it works:

• Break-even price: The price at which the company's total revenue equals its total costs.
• Break-even output: The quantity of goods or services that must be sold to generate revenue equal to the company's total costs.
• Fixed costs: Costs that do not vary with output, such as rent or salaries.
• Variable costs: Costs that vary with output, such as raw materials or labor.

To calculate break-even price and output, you use the following formula: Break-even price = (Fixed costs + Variable costs)/Units sold.