Break-Even Analysis Components - Break-even analysis compares sales income to fixed business costs [1] - The five components are fixed costs, variable costs, revenue, contribution margin, and break-even point (BEP) [1] Break-Even Point (BEP) Calculation - Companies calculate BEP to identify sales needed to cover fixed costs before profit generation [1] - The BEP formula determines the break-even point in product units or sales dollars [1]