What is the break-even point? How to convert it?

The break-even point is the point at which the volume of production and sales is at a certain amount, there is no gain or loss, and the revenue is exactly equal to the cost, so the profit and loss is zero. Production and sales volume, such as more than this point that there are benefits to be gained, production and sales volume, such as lower than this point, that is, the possibility of loss, the point that is the break-even point

Classical managerial accounting formula: P = px-bx-a on the encounter of nothing to be afraid of. P is the profit p is the price of the unit of sale x is the volume of sales b is the unit of variable cost a is the fixed cost, which means that the profit P = sales revenue px - the total amount of variable cost bx - total fixed cost a. Total fixed costs a. The break-even point is the volume of sales x or sales px when P profit is equal to 0, so break-even point sales x = a/(p-b)

The break-even point is sales px.

Understanding Volume-Cost-Profit AnalysisFirst of all, you need to understand the classification of costs by managerial accountants: Fixed Costs, Variable Costs.