# Assumption of Break Even Point

Break even point is the level of sales at which profit is zero. According to this definition, at break even point sales are equal to fixed cost plus variable cost. This concept is further explained by the the following equation:[Break even sales = fixed cost + variable cost].Assumption of Break Even Point is a technique extensively used by production management and management accountants. Sum of variable and fixed costs are matched up to with sales revenue in sort to describe the level of sales volume, sales value or production at which the business makes neither a profit nor a loss that is Assumption of Break Even Point.

## Break Even Point Analysis-Definition, Explanation Formula and Calculation

Break Even Point Analysis-Definition, Explanation Formula and Calculation: Learning Objectives: Define and explain break even point. How is it calculated? What are its advantages, assumptions, and limitations? Definition of Break Even Point Calculation by Equation Method Calculation by Contribution Margin Method Advantages / Benefits

## Break Even Point Formula Analysis and Calculation

Break Even Formula ,analysis, definition and Calculation: Learning Objectives: Define and explain break even point equation. How break even point is calculated by formula or methods of estimating break even point? What are its advantages, assumptions, characteristics and limitations? What are the three approaches of break