Breakeven Point: Definition, Examples, and How To Calculate
Breakeven Point: Definition, Examples, and How To Calculate
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Break-Even Point | Definition, Formula & Calculation
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✔️Concept of Break-Even Point (BEP) 🔷Meaning: The Break-Even Point is the level of sales or output at which total cost equals total revenue. At this point, the business makes no profit and no loss. 🔹In simple words: Break-even point is the minimum sales needed to recover all costs. ◼️Key Features: ▪️Profit = Zero ▪️Total Cost = Total Revenue ▪️Fixed costs are fully covered ▪️Business starts earning profit only after BEP 🔲Formula of Break-Even Point: 1. In Units: ▪️Break-Even Point (units) = F
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