CVP analysis

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» CVP analysis

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May 18, 2008, 04:49 AM

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maddsibert is offline

Join Date: May 2008

Posts: 1

CVP analysis

In the process of using C-V-P analysis, what does it mean to “break even”?

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May 18, 2008, 02:39 PM	#2

morgaine300 Accounting Expert Join Date: Feb 2008 Posts: 1,396	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.

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