Break even

System
System Posts: 100,534 🤖 Admin 🤖
edited June 18 in AAT student discussion
Hi, Can anyone give any advice regarding calculating break even? I'm at a total loss. Cheers.

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  • System
    System Posts: 100,534 🤖 Admin 🤖
    Break even

    total fixed costs divided by contribution per unit = b/e number of units
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Break even

    Break-even point (BEP)is where the total contribution earned is just sufficient to meet the fixed costs leaving a situatin where no profit is made and no loss incurred. It can be calculated very simply by dividing the total fixed costs by the contribution per unit.<BR><BR>Graham Blott
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Break even

    if contribution per unit is not available, u can use the C/S ratio ie. contribution to sales ratio. <BR><BR>and to get the break even in revenue its break even units x the selling price

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