Let's consider an example for a crude oil producer:

Total Production Cost: The total production cost includes expenses such as exploration, drilling, extraction, transportation, refining, labor, equipment maintenance, and overhead costs associated with producing crude oil.

Total Revenue: The total revenue is determined by the selling price of crude oil per barrel multiplied by the total number of barrels produced and sold.

Breakeven Formula: The breakeven point can be calculated using the following formula: Breakeven Point = Total Production Cost / Total Number of Barrels Produced and Sold