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Break-Even Point

The point when the company starts to make profit. fixed cost/(selling price-variable cost).

Fixed Cost

The cost that is fixed on the products.

Variable Cost

How much the product costs.

Total Costs

All the costs in total.

Sales Revenue

What Affects BEP?

The fixed cost, selling price and variable costs.

Why Is BE Useful?

It tells you how many products you need to sell to get a profit.