Fixed costs ( Fixed Cost) = fixed cost amount (both are producing or not).BEP (in $) = Break Even Point in Dollar (P).BEP (units) = Break Even Point in units (Q).The BEP (units) = fixed costs/Contribution Margin per Production unit x price per Unit This is equation or formula of the BEP:īEP (in Dollar) = fixed cost/Production (price per Unit – variable costs per Unit) x price per Unit (2) BEP (units) = fixed costs/Contribution Margin per Production unitīEP formula to calculate how the sale of Dollar to be accepted in BEPĪ BEP formula to calculate how the sale of Dollar to be accept in order to Break Even Point can be calculate by dividing total fixed costs of production ( Production of Fixed Cost) and the selling price per Unit ( Sales Price per Unit reduce variable costs) use to generate a product ( Variable Cost) is then multiplied by the price per Unit again. (1) BEP (units) = fixed cost of production/ (selling price per Unit – variable costs per Unit)
Below is the formula-the formula for the calculation of two kinds of BEP.īEP formula to calculate how the units to be sold in BEPīEP formula to calculate how the units to be sold in order to Break Even Point can be calculate by dividing total fixed costs of production ( Production of Fixed Cost) and the selling price per Unit ( Price per Unit of Sales) reduce variable costs use to produce the products ( Variable Cost). The Break Even Point is a condition of the company does not earn a profit and not suffer the losses means all fees that have been incurred for production operation can be covered by revenue from product sales.īasically, there are two types of calculation of the BEP IE count the number of units to be sales in order to Break Even Point and count how many sales Dollars that need to be accept in BEP.A break Even Point is where total revenues equal total costs, the point is zero profits "or in the language of Indonesia can be translated into a Break Even Point is where the total fee income the same total, the point is zero profit.The Break Even Point is the level of sales where the profit is equal to zero, or the total sales equals the total load or the point where total contribution margin equals the total load remains.BEP or break-even sales volume which is the amount of income and the amount of the same output load, no profit or loss NET.Break-even is a situation where an undertaking does not gain profit and did not suffer a loss, in other words an attempt is said to break even if the amount of income (revenue) is equal to the amount of the fee, or If the profit contribution can only be used to offset the costs still.The Break Even Point or a BEP can be defined as a situation where the total income of a magnitude equal to the total cost (TR = TC).The following are some understanding or definition of BEP (Break-even Point) according to the experts. Analysis with Break Even Point (BEP), corporate management can determine the minimum number of sales that must be maintained in order not to suffer losses and also knowing the amount of sales required to obtain the level of profit particular management as well as help in making decision whether to continue or suspend its business. In other words, Break even or Break Even Point is the point at which a business does not suffer losses and also does not gain an advantage.Īnalysis of Break-Even Point (BEP) is generally used to calculate when a business or business/project will benefit by means of equating the total revenues by the total cost. The break-even point which is usually is called the "Break even" This usually compares the amount of income or the number of units that must be sold to cover fixed costs and variable costs related to generate a sale.
A Break-Even Point or often abbreviated with the BEP is a point or a situation where sales and expenses equal to or a condition in which the company sales enough to cover his business expenses.
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