Break even point
Querist : Anonymous
Please let me know what is break even point and why this is required to calculate.
What is role of the Fixed amount,variable amount and contribution amount.
Kindly let me know all the concepts which can help me out to get this properly.
In the sales after deducting the variable cost balance amount will be required to recover the fixed cost, so the calculation of recovery point called BEP
- Variable cost
= Contribution
- Fixed Cost
= Profit
Querist : Anonymous
I know this formula and doing calculation of BEP but want to know here that what does mean the variable cost and fixed cost.
How can we define the variation in expenses. How would we define the fixed cost or there are any concepts for this.
Thanks to you!
Fixed Cost is the cost which doesnot change with change in production
Break even point means the place where there is no profit or no loss situation
it means the sales value is equal to the cost incurred for producing the same
Fixed Cost is the cost which doesnot change with change in production
Break even point means the place where there is no profit or no loss situation
it means the sales value is equal to the cost incurred for producing the same
Querist : Anonymous
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