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What is Breakeven Analysis?
Breakeven Analysis:
It implies that at several point in the operations, total revenue equivalents total cost. This analysis is concerned along with finding the point at those revenues and costs agree accurately, therefore the term ‘Break-even Point’. The demonstrated figure portrays the Break Even Chart in below:
PERCENTAGE OF CAPACITY or UNITS OF OUTPUT
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How is the break-even point computed? The BEP (Breakeven point) can be computed by using the given relation as follows: BEP = F/(1 – V/P)
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