Introduction of the term Break Even Point
Give a brief introduction of the term Break Even Point. How does BEP aid in making business decision?
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Break Even Point (or BEP) is a quantity of sales where there is neither profit nor loss. Which means contribution is sufficient to cover the fixed costs. Therefore, we can say that Contribution = Fixed Cost Any contribution generated after BEP will straight result in profits as the fixed costs are completely covered now. BEP can be evaluated in two ways: In phrases of Quantity- Fixed Costs / Contribution per unit In phrases of Amount- (Fixed Costs) / (P/V Ratio)
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In what condition the concept of marginal costing basically applied?
An apparent monopoly might charge the competitive price in the long run when: (w) exit is costly. (x) entry and exit are relatively costless. (y) this is not a natural monopoly. (z) this is not regulated. Discover Q & A Leading Solution Library Avail More Than 1444096 Solved problems, classrooms assignments, textbook's solutions, for quick Downloads No hassle, Instant Access Start Discovering 18,76,764 1923128 Asked 3,689 Active Tutors 1444096 Questions Answered Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!! Submit Assignment
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