ECONOMICS

Detailed explanation-1: -What is Break-even Point? Break-even point (BEP) is a term in accounting that refers to the situation where a company’s revenues and expenses were equal within a specific accounting period. It means that there were no net profits or no net losses for the company – it “broke even”.

Detailed explanation-2: -Break-even (or break even), often abbreviated as B/E in finance, (sometimes called point of equilibrium) is the point of balance making neither a profit nor a loss. Any number below the break-even point constitutes a loss while any number above it shows a profit.

Detailed explanation-3: -Break-even point This is the point where your total revenue (sales or turnover) equals total costs. At this point there is no profit or loss-in other words, you ‘break even’.

Detailed explanation-4: -What is the break-even point for a business? A business’s break-even point is the stage at which revenues equal costs. Once you determine that number, you should take a hard look at all your costs-from rent to labor to materials-as well as your pricing structure.

Detailed explanation-5: -For a situation of no profit no loss, cost price must be equal to selling price.