Break-even point (BEP) exis the point at which cost or expenses and revenue are equal: there is no net loss or gain, and one has "broken even". A profit or a loss has not been made. When people starts the business then it’s always main aim to earn maximum profit in the business But now question arises is that when no profit or no loss then why person survive in the business.
Why Person Survive in the Business Whether No Profit Or No Loss:
In the break-even point, always situation arises no profit or no loss. but when no profit in the business then why the person survive in the business. It does not means person nothing earned from the business. It means that only that portion of the profit is earned which is only helps to meets his daily needs related to the business not for a positive saving.
In the break-even point, always situation arises no profit or no loss. but when no profit in the business then why the person survive in the business. It does not means person nothing earned from the business. It means that only that portion of the profit is earned which is only helps to meets his daily needs related to the business not for a positive saving.
It means that profit is the wider term of the business. Profit is always included in the sales revenue but when sales revenue is greater than total cost then it is very helpful for the saving purpose. In other words, we can say that when he starts the business then always just estimate profit margin in the sales revenue.
