What is meant by breakeven point?

The breakeven point is the level of production at which the costs of production equal the revenues for a product. In investing, the breakeven point is said to be achieved when the market price of an asset is the same as its original cost.

What is the break-even point formula?

To calculate the break-even point in units use the formula: Break-Even point (units) = Fixed Costs ÷ (Sales price per unit – Variable costs per unit) or in sales dollars using the formula: Break-Even point (sales dollars) = Fixed Costs ÷ Contribution Margin.

What is meant by break-even point explain with diagram?

In its simplest form, the break-even chart is a graphical representation of costs at various levels of activity shown on the same chart as the variation of income (or sales, revenue) with the same variation in activity. … At low levels of output, Costs are greater than Income.

What is break even Mcq?

Break-even point: It is the point of intersection of the total cost line and total revenue line. There is neither profit nor loss at the break-even point. At the break-even point, the margin of safety ratio is 0.

What is the break-even point quizlet?

Break-even point is the point where revenues equal the total of all expenses including the cost of goods sold. … The contribution margin per unit is the selling price per unit minus the fixed expenses per unit.