Break-even point (BEP)

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Investopediaยท 2025-09-25 14:01
A break-even analysis compares income from sales to the fixed costs of doing business. The five components of a break-even analysis are fixed costs, variable costs, revenue, contribution margin, and the break-even point (BEP).When companies calculate the BEP, they identify the amount of sales required to cover all fixed costs before profit generation can begin. The BEP formula can determine the BEP in product units or sales dollars.To learn more about how break-even analysis works, learn more here: https:// ...