What is the Break-Even Point (BEP)?
The break-even point analysis is commonly used in feasibility studies to determine the minimum quantity of products needed to be sold or the volume of services that must be rendered to ensure that the business will not suffer a loss from its operations.
How to compute for the Break-Even Point (BEP)?
Calculating the break-even point is easy and relatively straightforward for businesses offering a single product or service. However, it can be quite challenging for those offering multiple products or services.
To give you an overview, let’s look at the below formulas:
Single Offer Formulas
Multiple Offers Formulas
The only difference between the computation for single and multiple offers is the need to calculate the sales mix of each product, which can be time-consuming for those with numerous offers.
Excel Template
Single Offer Template
Multiple Offers Template
If the web template is not working. Please try the following:
- Refresh the page.
- Use PC or tablet.
- Make sure that you are NOT using Incognito Mode or Safari Browser.
- If the above steps don’t work, you may download the file Feasib Accountant Break-Even.xlsx
How to use the Feasib Accountant's Break-Even Point template?
Simply fill in your data to the white-shaded cells in the template and it will automatically compute the break-even point for you.
You may opt to edit the format or hide the empty cells at your convenience for presentation purposes.
