Break-even analysis is most commonly used to find the number of units a particular business needs to sell to avoid losses. The given below is the Break Even Point formula to do Break Even Analysis. As per the BEP formula, dividing the fixed cost by the deducted value of variable unit cost from unit price will give is the BEP. This Break Even analysis formula will be a efficient one for the accounting professionals to calculate the Break Even Point to ensure the balanced progress in the sales.
This Break Even Point formula is a simple formula which needs only basic arithmetic operations to get the result. Refer this BEP formula to ensure whether your business is making necessary amount of sales or not.