Break-Even

Question 1

Definition of break-even

Answer 1

the point at which cost and income are equal and there is neither profit nor loss

Question 2

Formula 1 for calculating break-even

Answer 2

Fixed costs/ (sales price per unit - variable cost per unit)

Question 3

Formula 2 for calculating break-even

Answer 3

Fixed costs/ contribution per unit

Question 4

What other methods can you use to find the break-even point

Answer 4

• A table

* A graph