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maddsibert
May 18, 2008, 05:49 AM
In the process of using C-V-P analysis, what does it mean to “break even”?

morgaine300
May 18, 2008, 03:39 PM
Break even is when revenues equal expenses. i.e. you only broke even and did not lose anything or make any profit.

A sample in the format for CVP:
10,000 Sales
- 7,000 Variable Costs
3000 Contribution Margin
-3000 Fixed Costs
-0- Profit (broke even)

And this format I'm using is something you'll also need to know.