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The Break-Even Point The break-even point (BEP) in economics , business —and specifically cost accounting —is the point at which total cost and total revenue are equal, i.e. "even". In layman's terms, after all costs are paid for there is neither profit nor loss.
A simplified cash flow model shows the payback period as the time from the project completion to the breakeven. In economics and business, 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".
This break-even point can be an initial examination that precedes a more detailed CVP analysis. ... it is a profit if positive, a loss if negative. Break down
And when we get exactly to breakeven positive, won't be this year, but can't wait to have that discussion as we move out beyond exiting this year. Sheila Kahyaoglu -- Analyst Got it.
For example, a production line with positive contribution margin should be kept even if it causes negative total profit, when the contribution margin offsets part of the fixed cost. However, it should be dropped if contribution margin is negative because the company would suffer from every unit it produces. [3]
Another way to state the rule is that a firm should compare the profits from operating to those realized if it shut down, and select the option that produces the greater profit (positive or negative). [12] [13] A firm that is shut down is generating zero revenue and incurring no variable costs. However the firm still incurs fixed cost. [14]
That's a very positive statement because investors had reason to fear the increase in engine deliveries (which are typically sold at a loss, hence the "negative engine mix" comment) would hold ...
That stands in contrast with a lot of other software companies that have been displaying growth but with little or negative profitability. ... either breakeven economics or slight losses. But last ...