[PDF] coefficient bep commerce

What is a break-even point (BEP)?

BEP, or break-even point, is a business calculation used to determine the number of sales required to break even or return capital, at which point the business begins to expect profit. In addition, BEP also acts as a benchmark for someone to start a business or invest. Advantages of BEP is very important for the sustainability of the company.

What is the relationship between BEP value and product cost?

The relationship between BEP value, product cost, and profit is parallel, so if one element’s value increases, the other element will also increase, and vice versa. Because BEP serves to determine the change in profit, BEP can also determine losses.

What is a BEP & how does it work?

At the BEP, the revenue of the company by the sale of manufactured products is equal to the total costs incurred in manufacturing the product. In accounting terms, at this point, the company’s total profit is zero. So it is a situation where there is no profit, no loss to the company.

What factors contributed to the formation of BEP?

Here is an explanation of each of the aspects that contributed to the formation of BEP: Fixed cost is a cost that remains constant regardless of changes in the production process. The change in question is the company’s ability to produce goods over time. Examples of fixed costs are depreciation, labor, building, or warehouse leases.