Breakeven Point Business

About Breakeven Point Business

All the entrepreneur must know what is the number of Sales that he has to get in order to have no losses or to start making profits. That figure is known as the break-even point (BEP)

The break even point application is ideal for those who are starting up or already have an established business. From now on you can minimize risks and maximize profits. With the necessary tools and available now you will know if you are going to produce utility and at what level of activity.

Break even point is a useful adjunct to efficiently and effectively manage your company's total costs. If you want to know the level of production and break even point, this application is for you.

This app is also used by students of engineering, industrial engineering, economics, accounting, business administration and all careers related to business management.

For a better understanding you must have knowledge of the cost classification. In the determination of the equilibrium point they will be used.

- Fixed costs: they are all those that remain constant and do not depend on the volume of production, for example: rent, depreciation, insurance, salaries, etc.

- Unit variable cost: these costs depend on the volume of production, therefore they are directly proportional, for example: raw material, direct labor, commissions, etc.

- Sale price: unit sale price is the monetary value that is given to a product with a profit margin after assuming the costs of this.

-Utility: is the gain you want to obtain, in determining the equilibrium point we introduce the utility we want to generate.

Characteristics
1) Enter data for fixed costs, variable costs, selling price and utility.
2) Summary of total costs.
3) Total production level to reach break-even point in monetary units and quantity.
4) Total production level to reach the expected utility in monetary units and quantity.
5) Calculation of the break even point in monetary units and quantity.
6) Select the currency according to your country.
7) Graphical representation of all the data in the calculation of the break even point.