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Break-Even Point Calculator

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✖Fixed costs are the cost that does not change with an increase or decrease in the number of goods or services produced or sold.ⓘ Fixed Costs [FC]			+10% -10%
✖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.ⓘ Contribution Margin per Unit [CM]			+10% -10%

✖Break-even (or break even) is the point of balance making neither a profit nor a loss.ⓘ Break-Even Point [BEP]

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Formula

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Break-Even Point

Formula

BEP = \frac{FC}{CM}

Example

50 = \frac{2000}{40}

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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)

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< Important Formulas of Business Calculators

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Go Economic Order Quantity = ((2*Fixed cost per order*Demand in Units Per Year)/Carrying cost per unit per year)*(1/2)

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Break-Even Point

Go Break Even Point = Fixed Costs/Contribution Margin per Unit

Solvency Ratio

Go Solvency Ratio = (Shareholders Fund*100)/Total Assets

Break-Even Point Formula

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.

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