subsidy offsets the cost of retooling the factory, we need to consider the cost of retooling and the amount of subsidy provided. The break-even point is reached when the cost of retooling is fully covered by the subsidy. Let's break it down step by step: 1. Determine the cost of retooling the factory. 2. Find out the amount of subsidy provided by the government or any other source. 3. Calculate the break-even point by dividing the cost of retooling by the subsidy amount