Break-even (economics)

The break-even point (BEP) in economics, business, and specifically cost accounting, is the point at which total cost and total revenue are equal: there is no net loss or gain, and one has "broken even." A profit or a loss has not been made, although opportunity costs have been "paid", and capital has received the risk-adjusted, expected return. In short, all costs that needs to be paid are paid by the firm but the profit is equal to 0.

Overview

The break-even level or break-even point (BEP) represents the sales amount—in either unit or revenue terms—that is required to cover total costs (both fixed and variable). Total profit at the break-even point is zero. Break-even is only possible if a firm’s prices are higher than its variable costs per unit. If so, then each unit of the product sold will generate some “contribution” toward covering fixed costs.

For example, if a business sells fewer than 200 tables each month, it will make a loss; if it sells more, it will make a profit. With this information, the business managers will then need to see if they expect to be able to make and sell 200 tables per month.

Break-even

Break-even (or break even) is the point of balance making neither a profit nor a loss. The term originates in finance, but the concept has been applied widely since.

In economics

In economics and business, specifically cost accounting, the break-even point (BEP) is the point at which cost or expenses and revenue are equal: there is no net loss or gain, and one has "broken even." A profit or a loss has not been made, although opportunity costs have been "paid," and capital has received the risk-adjusted, expected return. It is shown graphically as the point where the total revenue and total cost curves meet. In the linear case the break-even point is equal to the fixed costs divided by the contribution margin per unit.

The break-even point is achieved when the generated profits match the total costs accumulated till the date of profit generation. Establishing the break-even point helps businesses in setting plans for the levels of production which it needs to maintain be profitable.

Break-even (disambiguation)

Break-even (or break even) usually refers to:

Break Even

Break Even are a hardcore punk band from Perth, Western Australia, originally formed in 2005.

History

Forming in the suburbs of Perth in 2005, Break Even have released two successful releases and toured with the biggest names in local and international hardcore.

On 19 November 2008 Break Even guitarist Rowan Willoughby took his own life. Rowan's untimely death took a toll not only on the members of the band, but with everyone in the hardcore community, leaving a giant question mark over the future of the band.

The band recovered and released their debut album, The Bright Side in June to rave reviews by both fans and critics alike. The album, came in at number 17 on the ARIA album chart and reached number 7 on the national AIR chart.

Breakup

On 23 February 2012, Break Even announced their breakup through various internet communities. The message to their fans on Facebook read;

The band did their final national tour as a part of the Soundwave Festival in February 2012 and announced their final dates for July 2012.