Thursday, October 2, 2014

Break Even Point (BEP) - Meaning - Explanation

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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