The break even point on a graph usually appears as the location where 2 lines meet. This is where profit starts to go down for example.
i want to understand the toic of compsit break-even
Formula to calculate breakeven point is as follows: Break even point = Fixed cost / contribution margin Contribution margin = Sales - Variable cost
Once the contribution margin is determined, it can be used to calculate the break-even point in volume of units or in total sales dollars.
This isn't a question, even. It's a statement about a line segment, QR.
Break Even Point: It is the point where firm's at no profit no loss situation/position that's why it is called break-even point. So at this point firms has no profit no loss and it is the point where firm's able to achieved all expenses of operation and after this point whatever sales made by firm goes to profit of company.
The point at which the value of sales of an item equals the total expenses incurred in producing or obtaining it.
A break even point is when a person breaks even on something. Breaking even means a person did not lose or gain anything. An example of this is when the sale of a product equals the invested cost, which results in neither a loss or profit.
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.
It need not be. A lower break even point means that you stop making losses sooner. But it is possible that you make no profit at all. Ever. You just manage to break even. With a higher break even point it would be more difficult to stop making a loss but, once beyond that point, you could make loads of profit. Nothing ventured, nothing gained, as the saying goes.
Breakeven point is the point where firm has no profit no loss while breakeven analysis is the process of finding out the breakeven point.
an operating profit
Break even analysis is utilized to get the information that how much number of units must be produced and sold to cover the cost of production and to become at no profit no loss point and after which point company starts to earn profit.
The break- even analysis identifies the break-even point, which is the level of sales and expenses, including loan principal payments, at which a business has no profit and no loss.
All units sold above the break even point will be a profit equal to the contribution margin.
That is called a Break Even Point
The biggest disadvantage of break even point is that you didn't make any money. You made enough to cover what you paid out, but did not turn a profit.