[C Accountant]

What is BEP Slaes and How to calculate BEP Sales?

Please answer my ?

[morgaine300]

You don't need to tell us to answer your question. We kind of already assume you want an answer. And asking is always better than telling us to answer.

Had to look that one up cause I don't think I've seen the abbreviation BEP. BE I've seen. That's break-even. The BEP is "break-even point." Break even is where revenues equal expenses, and there's therefore no profit or loss.

How you calculate it depends on the information you have. For one, calculating break even in units is different than break even in sales dollars. Break even in units is fixed costs divided by contribution margin. How you're going to do it in sales dollars is even more dependent upon what type of info you've been given. For instance, if you know the sales price per unit, you can figure out break even units and just multiply by the price per unit. But there's other info you could have and other ways to do it.

I am extremely curious as to the combination of questions you've asked. i.e. one about what a trial balance is and one about break even. A trial balance is generally learned in a very first chapter of a financial accounting class, and break even is generally done about 4-6 chapters into a cost accounting class (or towards the end of a principles sequence). So that combination of questions doesn't make much sense to me. Cost accounting classes generally don't have you making trial balances. If you're really at the beginning of a financial accounting class, you shouldn't need to be worrying about break even stuff, unless you're just curious.