BEP Guides

Break Even Point: Avoiding Losses

The break-even point for any company is when the costs or expenses are equal to the revenue that is earned. This means that any revenue that comes in after the break-even point is the profit or any shortcoming is the loss. Simply put the break-even point is the number of units that need to be produced in order to earn profits and stay afloat. This is an important parameter in small businesses as the amount of production is comparatively small and the relation between productivity and profits is fragile and sensitive.