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Break-even point (BEP)

Break-even point (BEP). break-even point  (BEP) is the point at which cost or expenses and revenue are equal (or profit equals zero ). Example if a business sells fewer than 200 units each month, it will make a loss, if it sells more, it will be a profit.

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Break-even point (BEP)

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  1. Break-even point (BEP) • break-even point (BEP) is the point at which cost or expenses and revenue are equal (or profit equals zero ). • Example • if a business sells fewer than 200 units each month, it will make a loss, if it sells more, it will be a profit. the business managers need to see if they expect to be able to make and sell 200 units per month.

  2. Break-even point (BEP) • The break-even point (in terms of Unit Sales (X)) can be directly computed in terms of Total Revenue (TR) and Total Costs (TC) • Profit =0 • Total Revenue (TR) = Total Costs (TC) • UnitSale Price * X = Total fixed cost + variable cost * X

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