At which stage do sales revenues match costs and expenses for a product?

The stage at which sales revenues match costs and expenses for a product is referred to as the break-even point. This is a critical financial metric as it indicates the point at which a company is not making a profit, but also not suffering a loss. At the break-even point, total revenues equal total costs (both fixed and variable), meaning that the business is covering all its expenses.

Understanding the break-even point is crucial for businesses as it helps in determining the minimum sales needed to avoid losses. It serves as a benchmark for assessing the viability of a product and informs pricing strategies and sales targets. Managers can use this point to gauge how many units of the product must be sold to begin generating profit, making it an essential tool for financial planning and decision-making.

The other options represent different financial scenarios. The profit point occurs after surpassing revenue needs, the loss point is when costs exceed revenues, and market saturation refers to a scenario where a product has reached maximum sales potential in the market, none of which directly relates to the specific moment of covering costs and expenses like the break-even point does.