A break-even analysis may be simply defined as the analysis of various things at a break-even point. That is the point where any project would stand at zero profit (no loss, no profit). This is a point where sales revenue is only covering the costs.
For a company or any of its products to survive, it is important to at least be at the break-even point. It is an important analysis in evaluating the risk factor of any activity. This analysis calculates the relation between variable cost, fixed cost and profit.