Break-even PointBEP

At the break-even point, total contribution exactly covers fixed costs. Below it the firm makes a loss; above it every additional unit adds its contribution to profit.

• Break-even units = Fixed costs / Contribution per unit
• Break-even sales in rupees = Fixed costs / P/V ratio

where contribution per unit is selling price minus variable cost per unit and the P/V ratio is contribution divided by sales.

The break-even point falls when fixed costs fall, selling price rises or variable cost per unit falls. It rises in the opposite cases. A break-even chart plots total cost and total revenue lines; their intersection is the break-even point.

Bankers look at the break-even level in project appraisal. A project whose expected sales are only slightly above break-even has a thin margin of safety and a higher risk of failing to service the loan.

समच्छेद बिन्दुमा कुल योगदानले स्थिर लागत ठ्याक्कै धान्छ। यसभन्दा तल नोक्सान र माथि प्रत्येक थप एकाइको योगदान नाफा हुन्छ।

• समच्छेद एकाइ = स्थिर लागत / प्रतिएकाइ योगदान
• समच्छेद बिक्री (रु) = स्थिर लागत / P/V अनुपात

स्थिर लागत घट्दा, बिक्री मूल्य बढ्दा वा प्रतिएकाइ परिवर्तनशील लागत घट्दा समच्छेद बिन्दु घट्छ। बैंकले परियोजना मूल्याङ्कनमा अपेक्षित बिक्री समच्छेदभन्दा कति माथि छ भनी हेर्छ।