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    maddsibert's Avatar
    maddsibert Posts: 1, Reputation: 1
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    #1

    May 18, 2008, 05:49 AM
    CVP analysis
    In the process of using C-V-P analysis, what does it mean to “break even”?
    morgaine300's Avatar
    morgaine300 Posts: 6,561, Reputation: 276
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    #2

    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.
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