It need not be.
A lower break even point means that you stop making losses sooner. But it is possible that you make no profit at all. Ever. You just manage to break even.
With a higher break even point it would be more difficult to stop making a loss but, once beyond that point, you could make loads of profit.
Nothing ventured, nothing gained, as the saying goes.
break even point in rand
I think it is calculated by Break-even point, which is TC=TR Then, the Break-even point is multiplied by the unit cost.
I think it is calculated by Break-even point, which is TC=TR Then, the Break-even point is multiplied by the unit cost.
The break-even point, or BEP, is the point where revenue and expenses or cost are equal. It is when an individual has broken even and there is no net gain or loss.
How to calculate the break even of EBIT
Break-even point = Fixed cost / contribution margin ratio Contribution margin ratio = sales - variable cost / sales by using these equations break even point can be calculated
The break even point refers to the point wherebye the voyage freight rate equates to the cost of running the ship!
Breakeven point is the point where firm has no profit no loss while breakeven analysis is the process of finding out the breakeven point.
tutti
the break even is calculated as such: SP-VC=_ FC/_=(BREAK EVEN POINT) so in this case-->> £180,000-£60,000=£10,000 £30,000/£10,000 = 3 So the break eve the break even is calculated as such: SP-VC=_ FC/_=(BREAK EVEN POINT) so in this case-->> £180,000-£60,000=£10,000 £30,000/£10,000 = 3 So the break even point in here would be 3... :D
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Break Even Point: It is the point where firm's at no profit no loss situation/position that's why it is called break-even point. So at this point firms has no profit no loss and it is the point where firm's able to achieved all expenses of operation and after this point whatever sales made by firm goes to profit of company.