I WANT TO KNOW BREAK EVEN POINT AND CALCULATION OF THAT
1 Replies
Prateek Sharma
(student)
(194 Points)
Replied 17 June 2014
Break even point is that situation in which firms's cost = revenue . in other words firm earning is only to bear the cost . It the point in which firms earns no profit no loss. If production increase then profit will decreases irrespective of fixed cost & vive versa then profit wil increase.
BEP ( in sales) = Fixed cost/ contribution per unit
Contribution = sales- variable cost
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