I WANT TO KNOW BREAK EVEN POINT AND CALCULATION OF THAT
sanjaykumarchauhan (accountant) (32 Points)
10 June 2014I WANT TO KNOW BREAK EVEN POINT AND CALCULATION OF THAT
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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