0
Break even point refers to the time frame when you would have made enough money out of a business which equals the money you invested when you started it. For ex: you start a restaurant with a $100,000/- investment and you make a total profit of $25,000/- every month, then the break even point would be 4 months. At the end of the fourth month you would have made enough money that equals your initial investment. Break even point is an important factor which helps people decide on whether to begin a business or not. Sooner the break even point is reached, the better are the chances of that business being started. Nobody would want to wait years before which he can take back the money he invested in starting the firm.
Wiki User
∙ 14y ago
Add your answer:
Earn +20 pts
What is break even point?
The break-even point, or BEP, is the point where revenue and expenses or cost are equal. It is when an individual has broken even and there is no net gain or loss.
How do you calculate the break-even point for EBIT?
How to calculate the break even of EBIT
What is The break even point in voyage estimation?
The break even point refers to the point wherebye the voyage freight rate equates to the cost of running the ship!
What is the break even point?
The point where Total Sales = Total Cost
What does term of breakeven mean?
The term 'break-even' refers to the point at which a company has no profit and no debts. They have no losses or gains.
Explain why operating leverage decreases as a company increases sales and shifts away from the break even point?
"Explain why operating leverage decreases as a company increases sales and shifts away from the break-even point."
Annual break even point in rand sales and unit sales?
break even point in rand
How do you calculate the market share to break even?
I think it is calculated by Break-even point, which is TC=TR Then, the Break-even point is multiplied by the unit cost.
How do you calculate the break even market share?
I think it is calculated by Break-even point, which is TC=TR Then, the Break-even point is multiplied by the unit cost.
What is break even point?
The break-even point, or BEP, is the point where revenue and expenses or cost are equal. It is when an individual has broken even and there is no net gain or loss.
How do you calculate the break-even point for EBIT?
How to calculate the break even of EBIT
Calculate the break-even point?
Break-even point = Fixed cost / contribution margin ratio Contribution margin ratio = sales - variable cost / sales by using these equations break even point can be calculated
Explain break even point?
The break-even point is the point - for example, the number of units sold - at which there is no profit and no loss. If - in the example - more units than the "break-even point" are sold, there will be a profit; if less are sold, there will be a loss. The reason for this is that there are fixed costs, such as salaries, that have to be paid even if no sales are made.
What is The break even point in voyage estimation?
The break even point refers to the point wherebye the voyage freight rate equates to the cost of running the ship!
Can you explain the break even chart in simple words?
you are ugly
Does break even point and break even analysis means the same?
Breakeven point is the point where firm has no profit no loss while breakeven analysis is the process of finding out the breakeven point.
What is meant by break-even point.how the physical facilities affect the break-even point?
tutti
