What Is Break Even Point (BEP)?

What Is Break Even Point (BEP)?

1 Answer

  1. Break Even Point or BEP is a point where there is no net profit or loss.
    BEP is calculated using the formula given below:
    BEP (in units) = Fixed Cost / Contribution Margin
    where Contribution Margin = Sales Price per unit – Variable Cost per unit
    When your sales exceed the Break Even Point, it then that your business starts making profit.
    If your sales is below the Break Even Point, then you are experiencing loss.

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