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respond to the below The break-even level or break-even point (BEP) represents the sales amount in either unit or revenue terms that is required to...
respond to the below
The break-even level or break-even point (BEP) represents the sales amount in either unit or revenue terms that is required to cover total costs (both fixed and variable). Total profit at the break-even point is zero. Break-even is only possible if a firm's prices are higher than its variable costs per unit. If so, then each unit of the product sold will generate some contribution toward covering fixed costs. Since the goal is to make profit for a business, you must look over the five cost concepts in order to find the break-even point. In order to make profit, you will have to find out how much your expense is compared to your revenue made. If expense is higher than revenue, you are losing money as a company. If revenue is higher than expense, then you are making a profit.
