The break even point for a prouct is the point where total revenue received equals the total costs associated with the sale of the product (TR=TC). A break even point is typically calculated in order for businesses to determine if it would be profitable to sell a proposed product, as opposed to attempting to modify an existing product instead so it can be made lucrative. Break-Even Analysis can also be used to analyse the potential profitability of an expenditure in a sales-based business.