Break Events Point (BEP)
Break event point is a situation where in an operating company does not make a profit or loss / break-even (income = total cost).
BEP is very important if we are making efforts so that we do not experience a loss, what a service or manufacturing businesses, among the benefits of the BEP is :
1. Planning tool to generate income
2. Provide information about the various levels of sales volume, and its relationship to the possibility of making profit by selling the relevant level.
3. Evaluating the company's overall profit
4. Changing the system of thick reports with graphs are easy to read and understand
Now that we know how beneficial the BEP in a business that we pioneered, kompenen a role here is cost, where cost is the cost of variable and fixed costs, which in practice to separate or define a variable cost or fixed cost was not an easy task, Costs remains is the cost incurred by us to produce or not, while variable costs are costs incurred to produce one unit of production so if not then there is no production of these costs
One of the weaknesses of other BEP is that there is only one kind of goods produced or sold. If more than one kind of the combination or composition of sales (sales mix) will remain constant. If today's views on that company to increase their competitiveness to create a lot of finished product is very difficult and there is one more assumption. The selling price of goods is unity will not change no matter how many units of the goods sold or no change in price in general. It is thus too difficult to find in reality and practice.
How is it calculated?
To calculate the BEP we can count in the form of units or the price depending to the needs
BEP CALCULATIONS
On the basis of unit
On the basis of sales in rupiah
Description:
FC : Fixed Costs
P : The sale price per unit
VC : Variable Cost per unit
Fixed costs are the total costs will not be amended if there is a change in production volume. Fixed costs in total will always be constant until the level of full capacity. Fixed costs are costs that will always happen even if the company does not produce.
Variable cost is the total cost of which varies depending on the change in volume of sales / production. Variable costs will change proportionally with changes in production volume.
BEP is very important if we are making efforts so that we do not experience a loss, what a service or manufacturing businesses, among the benefits of the BEP is :
1. Planning tool to generate income
2. Provide information about the various levels of sales volume, and its relationship to the possibility of making profit by selling the relevant level.
3. Evaluating the company's overall profit
4. Changing the system of thick reports with graphs are easy to read and understand
Now that we know how beneficial the BEP in a business that we pioneered, kompenen a role here is cost, where cost is the cost of variable and fixed costs, which in practice to separate or define a variable cost or fixed cost was not an easy task, Costs remains is the cost incurred by us to produce or not, while variable costs are costs incurred to produce one unit of production so if not then there is no production of these costs
One of the weaknesses of other BEP is that there is only one kind of goods produced or sold. If more than one kind of the combination or composition of sales (sales mix) will remain constant. If today's views on that company to increase their competitiveness to create a lot of finished product is very difficult and there is one more assumption. The selling price of goods is unity will not change no matter how many units of the goods sold or no change in price in general. It is thus too difficult to find in reality and practice.
How is it calculated?
To calculate the BEP we can count in the form of units or the price depending to the needs
BEP CALCULATIONS
On the basis of unit
On the basis of sales in rupiah
Description:
FC : Fixed Costs
P : The sale price per unit
VC : Variable Cost per unit
Fixed costs are the total costs will not be amended if there is a change in production volume. Fixed costs in total will always be constant until the level of full capacity. Fixed costs are costs that will always happen even if the company does not produce.
Variable cost is the total cost of which varies depending on the change in volume of sales / production. Variable costs will change proportionally with changes in production volume.
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