BEP

BEP, or Break-Even Point, is the level of sales at which a business's total revenue equals its total expenses, resulting in neither profit nor loss. It indicates how much needs to be sold to cover all costs. Once sales exceed this point, the business starts making a profit; below it, the business incurs a loss. BEP helps businesses plan and set sales targets, ensuring they understand the minimum needed to stay financially healthy. It is calculated by dividing fixed costs by the contribution margin per unit, providing a clear measure of operational sustainability.