Question

What is the break even point ? in Industries ?

Answer 1

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Definition:

The break even point is the production level where total revenues equals total expenses. In other words, the break-even point is where a company produces the same amount of revenues as expenses either during a manufacturing process or an accounting period

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The break-even point formula is calculated by dividing the total fixed costs of production by the price per unit less the variable costs to produce the product. ... Now we must add back in the break-even point number of units.

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The other is based on points on sales in GBP.

To calculate break-even point based on units: Divide fixed costs by the revenue per unit minus the variable cost per unit. ...

To calculate break-even point based on sales in GBP: Divide your fixed costs by the contribution margin.

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Answer 2

Heya...

Break even point in industries is :-

TR = TC

When the total revenue of the output covers all the cost of production involved...

Diagram illustrates this situation :-

Thank you..