Glossary: Break-even analysis

IB Business Management: Glossary: Break-even analysis

Break-evenThis condition exists when a firm’s sales revenues cover all of its production costs.Break-even point (BEP)This is the point on a break-even chart where the firm’s total costs equal its total revenue, shown by the intersection of the TR and TC curves.Break-even quantity (BEQ)The quantity of sales (sales volume) required for a firm to reach break-even. It is found by using the formula: BEQ = Fixed costs...

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