![]() ![]() ![]() Now, we will see some real-time examples of finding the break-even point in Excel analysis. read more, Variable Cost, and other miscellaneous costs. It is the type of cost which is not dependent on the business activity. The cost could come in multiple ways, and we classify that into Fixed Cost Fixed Cost Fixed Cost refers to the cost or expense that is not affected by any decrease or increase in the number of units produced or sold over a short-term horizon. So in simple terms, the break-even point is where a project’s cash inflow should equal the project’s cash outflow. So in business terms, if the amount of profit and expenses are equal, that is called the break-even point. Anything made after the break-even point will be considered a profit. So, when you earn 15,000, it becomes a break-even point for you. But, on the other hand, your per day salary is 1,000. For example, your monthly expenditure is 15,000, including all the rental, communications, food, beverages, etc. Now, we will see what precisely the break-even point is meant for. So, even when you work for other companies as an Analyst, they may want you to find the Excel break-even point of business. Break-Even Point (BEP) in Excel is the first landmark every business wants to achieve to sustain itself in the market.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. Archives
June 2023
Categories |