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Question
`What is BEP? How is it calculated?`
Question Submitted By :: Finance
I also faced this Question!!     Answer Posted By

# 1
BEP=break even point.....
and formula.... fixed cost
----------X100
p/v ratio

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

 Is This Answer Correct ? 119 Yes 18 No
Shivan

# 2
formula is same as above
BREAK EVEN POINT ON SALES - IT IS A POINT WHERE TOTAL
SALES=TOTAL COST IT IS A SITUATION WHERE COMPANY IS IN A
POSITION OF NO PROFIT AND NO LOSS. AT THIS POINT COMPANY
RECOVERED ITS FIXED COST.

BREAK EVEN POINT IN UNIT :- MEANS HOW MUCH UNIT WE PRODUCE
AND SALE TO GET BREAK EVEN

 Is This Answer Correct ? 57 Yes 13 No

# 3
BEP is a level where an organization meets a situation of
no profit and no loss.

Formula=Fixed cost/Selling Prize per unit-Varriable cost
per unit.

 Is This Answer Correct ? 19 Yes 3 No
Rohitash

# 4
): Break-even Point is refers to the level of operation at
which the project neither makes profit nor loss is
calculated.

Fixed
Costs
Break-even point = -----------------------------------------
------------
Unit selling price – Unit variable
cost

If the fixed costs are Tk. 15 million, unit selling price
Tk. 250 and unit variable cost Tk. 150, the break-even
point works out to:

Tk. 15 million
Break-even point = --------------------------- = 1, 50,000
units
Tk. 250 – Tk. 150
In the case of a new project where the capacity utilization
level is expected to rise gradually over a period of 3 to 4
years, fixed cost are normally planned in such a way that
are stepped up as and when necessary to meet the projected
increase in capacity utilization. Hence the calculation of
the break-even point for a new project must be with
reference to the fixed costs expected to be incurred in the
third year or fourth year when the project is supposed to
reach the rated capacity utilization level.
Fixed Costs
Break-even point = ------------------- X expected
production
(In terms of volume of Contribution in the
year
Production)
6,000,000
= ------------------ X 90,000
= 54,545 Units
9,900,000
Fixed Costs
Break-even point = ------------------- X
expected capacity utilization
(In terms of percentage of Contribution in
the year
Installed capacity)
6,000,000
= ------------------ X 90% =
54.55 percent
9,900,000
Fixed
Costs
Break-even point = ------------------- X
expected sales realization
Of Sales (In terms of Taka Contribution
in the year

6,000,000
= ------------------
X 18,000,000 = 10,909,090 Tk.
9,900,000

 Is This Answer Correct ? 18 Yes 6 No

# 5
Break-even Point is refers to the level of operation at
which the project neither makes profit nor loss is
calculated.

Costs
Break-even point = -----------------------------------------
------------
Unit selling price – Unit variable
cost

 Is This Answer Correct ? 16 Yes 5 No
Guru Dayal Singh

# 6
Break-even Point is refers to the level of operation at
which the project neither makes profit nor loss is
calculated.

BEP is a level where an organization meets a situation of
no profit and no loss.

Formula:
Fixed Cost
BEP=--------------- 100
P/V Ratio

 Is This Answer Correct ? 13 Yes 3 No
Vikas Wakchaure

# 7
BEP stands for Break Even Point, that means no profit no
loss. It's calculate mainly two types;
1. BEP in uinits, and
2. BEP in Rupees.

BEP in units= Fixed Cost(FC)/Contribution per unit
BEP in Rupees=Total Fixed Cost/Sales price minus variable
cost

 Is This Answer Correct ? 11 Yes 3 No
Nirakar

# 8
BEP is the abbrivation of break even point. It stands for
no loss and no profit in business. It is calculated as
above given formula

 Is This Answer Correct ? 7 Yes 2 No
Navidhesh

# 9
BEP stands for BREAK EVEN POINT, where there is no profit
and no loss. it can be calculated by using a formula.

BEP = fixed cost / PV ratio *100

 Is This Answer Correct ? 2 Yes 0 No
Srikanth

# 10
BEP is point where organisations stant no profit no
loss
there are two formula for calculate B.E.P.
*FIRST ONE IS FOR BEP IN UNIT
BEP IN UNIT=FIXED COST/CONTRIBUTION PER UNIT
*AND THE SECOUND ONE IS FOR BEP IN VALUE
BEP IN VALUE =FIXED COST/PVR

 Is This Answer Correct ? 2 Yes 0 No
Kittu