What is break even point?

Answer 1

Making profit equal to the same amount you put into a certain business.

Answer 2

The break even point in a business:

1. The total sales.................$10,000.00

2. Total cost of goods.............. 6,000.00.
3. Total expenses......................4,000.00

One can see that total sales equal total cost plus expenses.

This is part of business plans. When one knows the break even point, then one can determine how much profit to incorporate into the selling price. If the retail markup required to produce a profit is not competitive, then one must consider ways to reduce "expenses".

In the above example, $4,000.00 computes to 40% expenses. This is too high for the average business.

I've heard people say that they need to increase sales and it will take care of things. DUH!

I'm open for any questions if care to ask me.

Answer 3

first u invest and this time u r giving money from ur pocket but as ur project go pubic u start getting some think and extent of gain but during this period u r still paying but after some time u reach a point when u start getting the same money back as u r investing(putting in) That is
Ur investment = Ur gain
This is ur break even point

Answer 4

Break Even Point is the year / or date in which the Return on Investment (ROI) is equal to the initial investment (Capital).

B.E Point --> ROI = Capital

Answer 5

if u start a business with 100 bucks, and
that the moment when u earned 100 bucks
is called break even point

Answer 6

You buy $100 worth of product, sell those product for $200...

But operation costs (shelter, electric, wages, etc) cost you $100 as well...

That's a break even point.

Too much operation costs and you're losing money...

Answer 7

no profit no loss is break even point

suppose u bought 100bag of cement @rs 2000 and u sell @rs 2000 u r selling it in no profit and no loss ..if u r selling it in 2500 it is profit......bep is the state of no profit and no loss