Meaning of BEP:-The break-even point can be defined as the point or sales level at which profits are zero and there is no loss. It means it is a situation of no profit or no loss, i.e. total costs are equal to total sales revenue. Also, we can say that at break-even point profit being zero, contribution (Sales-Variable cost) is equal to the fixed cost. If the actual volume of sales is higher than break-even volume, there will be a profit. Beyond the break-even point, all the marginal contribution represents income.
Definition-" The Break-even Point of a company or a unit of a company is that level of sales income which will equal the sum of its fixed cost and its variable costs."- Keller and Ferrara.
"The Break-even Point is that point of sales volume where total revenues and total expenses are equal, it is also said as the point of zero profit or zero loss."- Charles T. Horngren.
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