Question #73117

at break even point

Expert's answer

Break-even is the point of zero loss or profit. Break-even point can be calculated

by equation method, contribution method or graphical method. The equation

method is based on the cost-volume- profit (CVP) formula:

px = vx + FC + Profit

At break-even point, the revenues of the business are equal its total costs and its

contribution margin equals its total fixed costs.

by equation method, contribution method or graphical method. The equation

method is based on the cost-volume- profit (CVP) formula:

px = vx + FC + Profit

At break-even point, the revenues of the business are equal its total costs and its

contribution margin equals its total fixed costs.

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