The Break-Even Point is the point at which total revenues equal total costs, meaning a business neither makes a profit nor incurs a loss. It helps businesses understand how much they need to sell to cover their expenses. This calculation is crucial for financial planning and decision-making. To find the break-even point, businesses typically use the formula: Break-Even Point = Fixed Costs / (Selling Price per Unit - Variable Cost per Unit). Understanding this concept allows companies to set sales targets and manage their finances effectively, ensuring sustainability and growth in the competitive market.