Added to Favorites

Related Searches

Definitions

Nearby Words

In economics, 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". Therefore has not made a profit or a loss.

- $begin\{align\}$

- TFC is Total Fixed Costs,
- P is Unit Sale Price, and
- V is Unit Variable Cost.

The quantity $left(text\{P\}\; -\; text\{V\}right)$ is of interest in its own right, and is called the Unit Contribution Margin (C): it is the marginal profit per unit, or alternatively the portion of each sale that contributes to Fixed Costs. Thus the break-even point can be more simply computed as the point where Total Contribution = Total Fixed Cost:

- $begin\{align\}$

In currency units (sales proceeds) to reach break-even, one can use the above calculation and multiply by Price, or equivalently use the Contribution Margin Ratio (Unit Contribution Margin over Price) to compute it as: $text\{Break-even\; Point\; (in\; Sales)\}\; =\; frac\{text\{Fixed\; Costs\}\}\{text\{C\}/text\{P\}\}.$

R=C Where R is revenue generated C is cost incurred i.e. Fixed costs + Variable Costs or Q X P(Price per unit)=FC + Q X VC(Price per unit) Q X P - Q X VC=FC Q (P-VC)=FC or Q=FC/P-VC=Break Even Point

The break-even point is a special case of Target Income Sales, where Target Income is 0 (breaking even).

There is a myth that Black Friday is the annual break-even point in American retail sales, but in fact retailers generally break-even (and indeed profit) nearly every quarter. lololo

In nuclear fusion research, the term breakeven refers to a fusion energy gain factor equal to unity, this is also known as the Lawson criterion.

The notion can also be found in more general phenomena, such as percolation, and is rather similar to the critical threshold. In energy, the breakeven point is the point where usable energy gotten from a process exceeds the input energy.

In computer science, the term refers to a point in the life cycle of a programming language where the language can be used to code its own compiler or interpreter. This is also called self-hosting. This usually marks a transition from a "toy" language to a language usable in the real world.

In medicine, it is a postulated state when the advances of medicine permit every year an increase of one year or more of the life expectancy of the living, therefore leading to medical immortality(barring accidental death).

Wikipedia, the free encyclopedia © 2001-2006 Wikipedia contributors (Disclaimer)

This article is licensed under the GNU Free Documentation License.

Last updated on Wednesday October 08, 2008 at 09:29:31 PDT (GMT -0700)

View this article at Wikipedia.org - Edit this article at Wikipedia.org - Donate to the Wikimedia Foundation

This article is licensed under the GNU Free Documentation License.

Last updated on Wednesday October 08, 2008 at 09:29:31 PDT (GMT -0700)

View this article at Wikipedia.org - Edit this article at Wikipedia.org - Donate to the Wikimedia Foundation

Copyright © 2014 Dictionary.com, LLC. All rights reserved.