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Take a LookQuick Definition
The minimum sales required for a company to meet its expenses.
There's More to Financial Analysis Than You Think...
The Financial Analysis Success Kit can help!
Why you should take a look at the Financial Analysis Success Kit:
We've combined all our highly popular financial analysis tools into one megafinancialanalysiskit that will save you hundreds of dollars if purchased separately. The kit contains 9 files packed with the most important financial ratio analysis tools you can find to help rocket your way to mastering financial analysis. The kit includes:

The eBook "Learn Ratio Analysis In Minutes"

The Learn Financial Ratio Analysis Excel Spreadsheet (2 versions!)

A BONUS eBook..."Key Financial Statement Terms"

Another HUGE BONUS...FivePart Financial Ratio Cheat Sheet Series
The result? You get all these professionally created tools for a great low price.
Learn more on our product page:
Break Even Point Formula
Explanation of Break Even Point
The Break Even Point (BEP) is a dollar figure calculated that represents the level of sales required for a company to meet its Operating Expenses, thereby breaking even. BEP is also called Breakeven analysis, BreakEven Sales, and Cost Volume Profit Analysis (CVP).
Importance of Break Even Point
A decreasing Break Even Point is generally a positive sign, showing that the company will have an easier time reaching the point at which it breaks even during the course of its operations. Additionally, this value is useful in trying “whatif” scenarios, by rerunning the calculation with estimated values in place of reported values to see how sensitive the Break Even Point reacts to these number changes.