Break even poit refers such level of poit where the total cost of the goods is equal to the selling price of the goods. Break Even Poit highlights that there is no profit and no loss. If the selling price exceed to the upper of the point then it can say that business have gain some profit. On the other hand the lowest value that lies below the break even point indicate that business have losses. The break even point is expressed as BEP. There are different formula of calculating break even point in output and selling price. In terms of output volume the break even point is equal to the fixed cost devided by the contribution per unit. On the other hand in terms of selling price break even point is fixed cost devided by total contribution multiplied eith total selling price. If that is extended than it is to say that the break even point in terms of selling price is fixed cost devided by P/V ratio.
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