How to Calculate Break Even Point in Sales Revenue (Learn the Easy Way)

[@mariahpark1871]

Thank you for this! I've been trying to figure this out for 2.5 hours, and your video made it all click!

[@Accountinguniv]

Glad I could help!

[@Accountinguniv]

Break-Even Point in Sales! Please comment if you have any questions.

[@jhanfaraz6515]

how we can calculate actual sales in break even point. if the amount of sales are not given

[@justagenzontheinternet808]

As a stem student this is my first time taking an accounting class at uni and This video really helped, thank you sm! :) ❤️

[@Tikel_]

This was GREAT! Very clear and concise. Thanks so much...

[@Accountinguniv]

Glad it was helpful!

[@mia35767]

Thank you 🙏 so clear and understandable 🤩

[@JustOlls]

thank youu, im writing maths tomorrow and this really helped. couldnt seem to understand break even point.God bless you

[@northice235]

Gracias

[@abdinasirnunimohamed3990]

This is well understood and very consises. thanks very you march.

[@Accountinguniv]

Thank you for watching!

[@adelorkchok9561]

thanks a lot Professor

[@istorya5459]

Hi, can you do an example using financial statements of bigger companies? I tried using one but it feels that my answer is wrong.

[@dankay9886]

This is super cute. I now know what is break even point.. Thanks

[@Accountinguniv]

You’re welcome 😊

[@Accountinguniv]

Cause I'm cute bruh

[@tikax2085]

Really helpful, I was struggling to understand this concept but you have made it so easy. thank you for sharing your knowledge

[@DROIDFARM]

GREAT video! Rewinding is so old school, but so am I hahaaha!

[@Dylan-cr5ub]

Thank you sir ❤

[@neclion2507]

Thanks a lot. Please, where can I find the PDf with formulas?

[@Accountinguniv]

Check out my Full Managerial Accounting Course for 85% Off. bit.ly/mgt-acct-review

[@semahegnamare6630]

thank you so much it is very interesting lecture please upload the full video

[@reahlynalison2421]

Thank you 💙😍

[@Andromeda2976]

Very useful, thankyou

[@edwinkj7047]

Thank you . It was great help.

[@rahyzav]

Thanks. Yo have saved my life! 😅

[@princessarekusa3501]

How do you guys calculate Total Revenue at the break even point?

[@nbecker]

helpful asf thanks man!!!!!! quick question, what is the point of Contribution margin and CM %... like what do they tell us

[@betracy5101]

Thank you so much. I'm so happy to enjoy your useful videos in the quarantine time. Take care! As the example, I have 2 questions: 1. This company is selling at a loss -$1080 sales, isn't it? Should this company continue to produce and trade these products/services with the present sales? Why? And how long? 2. What does it mean of the Net Profit in this example? Sales ($200) - Variable Cost ($75) - Fixed Cost ($800) = -$675 is Net Profit? Should this company continue to produce and trade these products/services with the present sales? Why? And how long?

[@Accountinguniv]

Hi Tracy, if a company is operating at a loss, they should re-evaluate how they are spending or generate more revenue so they can arrive at profit.

[@ayushyadav3707]

Thanks sir

[@dustiinde4216]

it was helpful. thanks

[@c.m.6957]

Thank you! very clear explanation with great visuals!

[@halfangelxvstorychannel5625]

Thanks for the explanation! I subscribed to your KZbin channel.

[@whitechocolate7648]

Thank u

[@ShopperPlug]

would be nice if you put the link on the description for watching the video of the "breakeven using units"... Thank GOD you made a Udemy video... gunna buy and watch that ASAP. Where is the PDF link? This is really an interesting process way of making profit, but I do not see how it can be applied to selling things on eBay. Its like covering all costs in advance then the remaing stock is all profit.

[@Accountinguniv]

Thank you for watching. You can get access to the pdf inside the accounting student accelerator. Access it here! bit.ly/aua-mgr

[@maeramos5721]

Thank you!

[@fouzanimran1805]

Sir I qeury in this qeution if 120000 our fixed cost and variable cost is 40 and cont to sale ratio is 60 percent so what our break even sale unit

[@siddeshbandekar1913]

My dear what if the contribution margin is in Minus?

[@Accountinguniv]

Contribution Margin won't be minus. If so, the company is at an internal loss which really doesn't happen.

[@POLYLIVING]

Where’s the link to the other video

[@Accountinguniv]

The other video is in the Accounting Student Accelerator! You can check it out here: bit.ly/aua-mgr

[@seavhongmoeun8710]

Thank for this video, but how about if we have 5-6 products? What should we calculate it?

[@rtgintltradinguae890]

Thank you

[@clau83938]

Thank you so much!

[@nelisarebeiro7774]

Hello, I have a question about break-even point. how do you find the break even point if the unit variable cost is 80 percent of the unit selling price, the unit selling price is $12 and the total fixed cost is $48000.

[@qarolnaitutai2424.]

I learned from this

[@amirhosseinpourfard9046]

How do you prove it in mathematics

[@tingfuj3158]

Service company R&D expense , installation fee and assets purchase. Above item need to count into break even revenue?

[@joeyardiri5047]

thanks

[@norbertvillas]

What about in the service industry?

[@Accountinguniv]

This will be best for manufacturing firms!

[@ntcuong01ct1]

Dear Friends, Could you write the formula of EBITDA breakeven?. Thanks.

[@Accountinguniv]

No problem! I will add that video to the list :)

[@charlottevogel4732]

Could I please have the formula sheet?

[@tadarecords]

Or if it is complicated for someone to understand it with cm%..mabye there is another simple way to get break even point sales. When you get break even point per units you can only multiply units at break even with price/unit: 800$/125$=6.4# x 200 = 1,280 $ It is the sames as 800$/ 0.625 = 1,280$

[@IkonWest]

appreciate you sir

[@shsurajsharma]

how is 125 divided by 200 = 62.5% wen i did the calculation is 0.625 ????? m confuse

[@Accountinguniv]

0.625 * 100 = 62.5%. It’s just how you convert decimals to percentages. Hope that helps!

[@user-zv1hy4uu5g]

Hansraj and Patel are engaged in providing and marketing a standard advice service. Summarised results for the past two months reveal the following: October November Sales (in units of service) 200 300 Total Sales Revenue (£) 5,000 7,500 Total Costs (£) (4,000) (5,300) Operating Profit (£) 1,000 2,200 Over the two months, there had been no changes in unit selling prices of services, or in the costs. What is the Break−Even Point (in units of service) for Hansraj and Patel (answer in nearest whole units)? A) 110 units B) 88 units C) 100 units D) 117 units

[@user-zv1hy4uu5g]

Can you please solve it.

[@peterheine6240]

Hello I have a question When do cash and breakeven points lead to the same result?

[@tadarecords]

Only if you work in cash basis

[@willowrose7791]

Thanks for this great video! I’m unsure about the fixed costs part- Do I calculate the fixed costs/week?/month?/3months? Cheers!

[@Accountinguniv]

Usually it’s on an annual level 👍

[@mzumad3368]

Won't the variable costs vary month on month?

[@sampadachavan4391]

If u have margin of safety is 25000,total sale is 60000then how to calculate BEP

[@dawnritter7651]

How did you get your fixed costs?

[@Accountinguniv]

They were given in the example :)

[@dawnritter7651]

@@Accountinguniv Outside of them being provided though, I have a school "problem" that did not provide fixed costs and it is asking for them with no documentation to calculate it.

[@Accountinguniv]

Fixed Costs are the expenses that (usually) don’t fluctuate every month. They stay the same. Here is a helpful video on Fixed Costs: m.kzbin.info/www/bejne/i4nXoXecqbKobMk

[@bautistarachelmarmito7644]

where did the fixed cost come from?? T_T

[@BreannaPHopkins]

That’s what I’m wondering 🥴🥴

[@rkmandokhail3658]

If your variable cost is 75 and fixed cost is 800 .its total is 875 then how your answer is 1280.your are wrong. Basically you miss one thing in the formula which is Fixed cos/1-percentage of contribution

[@raindropsofsky]

Break even point is not difficult to calculate.

[@ntcuong01ct1]

Dear Friends, I want to confirm: If a company has passed the break-even point, why should we do variable costs minimums and maximum fixed costs then the profits will increase more?. Thank you.

[@tadarecords]

Fixed cost are fixed cost, they are going to be approximately in the same level during the year this is why they are fixed, they will occur no matter if you produce or sale. Variabile cost per unit in normal operations will be at the same level for each unit produced/sold, it means this cost doesn't change individualy, but increases in the same rate with sales growth. As more as you generate sales, much more you will have variabile cost. This is why you need to know contribution margin - check above gross profit. Break even point it is an important information that tells you when your operating profit it is 0.00 Dollars, it means you are generating gross profit to cover all your fixed cost (rent, electricity, utilities, indirect salaries, maintenance etc) but not profit for the owners. Every dollar that pass break even point it is a profit before tax for the owner.

[@prakash6685]

Thank you sir