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How do you calculate the break-even point in terms of sales?

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Question added by Yazan Ahmad , programmer , wysada
Date Posted: 2017/01/24
Abdullah Aziz Eldain Morsi  Elgendy -        CMA  Candidate
by Abdullah Aziz Eldain Morsi Elgendy - CMA Candidate , Regional Receivable Accountant , Amiantit Group of Companies

 total cost = total sales revenue

Muhammad Raheel Siddiqui
by Muhammad Raheel Siddiqui , Operations Manager , JJ Chicken

By adding up fixed and variable cost and if the income goes above this point the firm starts making profit.

 

Muhammad Kassab  CPA CMA CertIFR
by Muhammad Kassab CPA CMA CertIFR , Accounting Manager , Marine Buildings Landmarks

Break-Even point = Total Fixed costs / Unit Contribution Margin

 

 

The Break-even point is the point where total Contribution Margin equals Fixed Costs.

Unit contribution margin = selling Price - Variable cost ( DM + DL + V. OH + V. S&A)

Fixed Costs = F. OH + F. S&A

 

 

 

 

 

Ahmed mohsen
by Ahmed mohsen , Senior Accountant , Main Poly Clinic

by dividing the company's total fixed expenses by the contribution margin ratio.

The contribution margin ratio is the contribution margin divided by sales (revenues)

Soliman Abd  ALmalak Gendy
by Soliman Abd ALmalak Gendy , مدير ادارة مراقبة حسابات , الجهاز المركزى للمحاسبات

The break -even point is the business vol5 that balances total costs with total gains

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