Break-Even Point Solution

STEP 0: Pre-Calculation Summary
Formula Used
Break Even Point = Fixed Costs/Contribution Margin per Unit
BEP = FC/CM
This formula uses 3 Variables
Variables Used
Break Even Point - Break-even (or break even) is the point of balance making neither a profit nor a loss.
Fixed Costs - Fixed costs are the cost that does not change with an increase or decrease in the number of goods or services produced or sold.
Contribution Margin per Unit - The Contribution Margin per Unit represents the incremental money generated for each product/unit sold after deducting the variable portion of the firm's costs.
STEP 1: Convert Input(s) to Base Unit
Fixed Costs: 2000 --> No Conversion Required
Contribution Margin per Unit: 40 --> No Conversion Required
STEP 2: Evaluate Formula
Substituting Input Values in Formula
BEP = FC/CM --> 2000/40
Evaluating ... ...
BEP = 50
STEP 3: Convert Result to Output's Unit
50 --> No Conversion Required
FINAL ANSWER
50 <-- Break Even Point
(Calculation completed in 00.004 seconds)

Credits

Creator Image
Created by Team Softusvista
Softusvista Office (Pune), India
Team Softusvista has created this Calculator and 600+ more calculators!
Verifier Image
Verified by Himanshi Sharma
Bhilai Institute of Technology (BIT), Raipur
Himanshi Sharma has verified this Calculator and 800+ more calculators!

Important Formulas of Business Calculators

Economic Order Quantity
​ LaTeX ​ Go Economic Order Quantity = ((2*Fixed cost per order*Demand in Units Per Year)/Carrying cost per unit per year)*(1/2)
Return on Capital Employed
​ LaTeX ​ Go Return on capital employed = (Earnings Before Interest and Taxes/(Total Assets-Current Liabilities))*100
Break-Even Point
​ LaTeX ​ Go Break Even Point = Fixed Costs/Contribution Margin per Unit
Solvency Ratio
​ LaTeX ​ Go Solvency Ratio = (Shareholders Fund*100)/Total Assets

Break-Even Point Formula

​LaTeX ​Go
Break Even Point = Fixed Costs/Contribution Margin per Unit
BEP = FC/CM

How to Calculate Break-Even Point?

Break-Even Point calculator uses Break Even Point = Fixed Costs/Contribution Margin per Unit to calculate the Break Even Point, Break-Even Point (or break-even) is the point of balance making neither a profit nor a loss. Break Even Point is denoted by BEP symbol.

How to calculate Break-Even Point using this online calculator? To use this online calculator for Break-Even Point, enter Fixed Costs (FC) & Contribution Margin per Unit (CM) and hit the calculate button. Here is how the Break-Even Point calculation can be explained with given input values -> 50 = 2000/40.

FAQ

What is Break-Even Point?
Break-Even Point (or break-even) is the point of balance making neither a profit nor a loss and is represented as BEP = FC/CM or Break Even Point = Fixed Costs/Contribution Margin per Unit. Fixed costs are the cost that does not change with an increase or decrease in the number of goods or services produced or sold & The Contribution Margin per Unit represents the incremental money generated for each product/unit sold after deducting the variable portion of the firm's costs.
How to calculate Break-Even Point?
Break-Even Point (or break-even) is the point of balance making neither a profit nor a loss is calculated using Break Even Point = Fixed Costs/Contribution Margin per Unit. To calculate Break-Even Point, you need Fixed Costs (FC) & Contribution Margin per Unit (CM). With our tool, you need to enter the respective value for Fixed Costs & Contribution Margin per Unit and hit the calculate button. You can also select the units (if any) for Input(s) and the Output as well.
Let Others Know
Facebook
Twitter
Reddit
LinkedIn
Email
WhatsApp
Copied!