It is a
point at which there is No Loss or No
Profit. The cost/expenses equals with revenue/gains. Anything above the BEP is
gain and anything less than BEP is loss. In other words, BEP is where there is ZERO
return on investment.
BEP in units = Fixed Cost
Contribution (Per
unit)
BEP in
Sales =
Fixed Cost
Contribution %
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