This article provides a full proof formula to calculate break even point. BEP can be calculated in a number of ways, depending on the nature of the information available. Let us use the following symbols in our calculation: P: Selling price per unit q: sales volume f: fixed cost me v: per unit variable cost. Now for BEP, Sales = [...]
Break-Even Analysis: Another form of financial analysis is breakeven analysis. It is a technique for finding a point at which a project will cover its costs, or break even. It is often used to make an initial decision on whether to proceed with a project. Breakeven analysis is also a technique of financial control in the sense that further analyses [...]
The break-even point means the level of output or sales at which no profit or loss is achieved. It indicates the position at which marginal profit or contribution is just sufficient to cover fixed overheads. In other words, a business is said to break-even when its income equals its expenditure. When production exceeds the "Break-even point", the business makes a [...]