# The Intelligent Way to Calculate Break Even Point for Business Activity

How to calculate, how to calculate, how to find a BEP, how to calculate the BEP Break Point Unit, Dollar Production in Business? More here include BEP calculation examples using the BEP Dollar formula and unit.

As a businessman, you certainly often make decisions related to investment for marketing development.

To calculate how many years the company can generate profits or to ensure when your business experiences returning capital.

Therefore you need how to calculate the break event point or how to calculate BEP.

Break Event Point or other names from Point Analysis are interpreted as a situation or point where the company in its operating activities does not benefit and does not suffer losses too.

In short, how to calculate the break event point is the break-even point between the amount of profit and the cost of a company in the same or balanced position, so that in the process it does not benefit and losses.

### Here's how to calculate, how to find a BEP, how to calculate the BEP Break Point Unit, Dollar, Production in Business

Then how do I calculate the Break Event Point and what are the calculation components? Journals will review more deeply on how to find BEP or how to calculate BEP.

#### Component break-even point

In calculating how much BEP or break-event point requires components.

The following is a component of the BEP that you must know.

Especially before you try to calculate the BEP Break Event Point Unit, Dollar Production in Business:

•    Fixed costs, both when companies are producing or not producing.

•    Variable costs (variable cost), this component is dynamic and depends on the production volume level. If production increases, the variable costs will also increase.

•    Selling prices (SELLING PRICE), selling prices per unit of goods or services that have been produced.

### How to Calculate Break-Even Point (BEP)

The following is an example of how to calculate the break event point or how to find BEP with a case study from the MSME business:

#### Case Examples of How to Calculate Bep Break Event Point

Here you will learn examples of BEP a company with certain data.

A company named "UG Mandiri" has cost data and production plans such as the following:

1. The cost of a month is \$ 140 million, consisting of:

•    Employee salary fee + owner: \$ 75,000,000

•    Car depreciation costs: \$ 1,500,000

•    Health insurance costs: \$ 15,000,000

•    Office building costs: \$ 18,500,000

•    Factory rental fee: \$ 30,000,000

2. Variable costs per unit \$ 75,000.00, which consists of:

•    Raw material costs: \$ 35,000

•    Direct labor costs: \$ 25,000

•    Other costs: \$ 15,000

3. Selling price per unit \$ 95,000

Now let's count how much the BEP level of the business is either in the unit or in the Dollar (with the Dollar BEP formula).

For example, the calculation of the "UG Mandiri" calculation is as follows:

Formula How to Calculate Bep Break Event Point Unit = Fixed Cost (Price / Unit - Variable / Unit Cost)

•    Bep unit = \$ 140,000,000 (\$ 95,000 - \$ 75,000)

•    BEP unit = \$ 140,000,000 / \$ 20,000

•    BEP unit = 7000 unit

Formula How to Calculate Bep Break Event Point Dollar = Fixed Cost (Margin Contribution / Unit Price / Unit)

•    BEP Dollar = \$ 140,000,000 (\$ 20,000 / \$ 95,000)

•    BEP Dollar = \$ 140,000,000 / \$ 0.2105

•    Bep Dollar = \$ 665,083,135

So, with the Dollar BEP formula, the Dollar BEP from the example above is \$ 665,083,135

Well, guess like it's a sample calculation of BEP using the Dollar and Unit BEP formula.

With the case of calculating BEP or how to calculate the BEP above we can have the conclusion that to get a break-even point at a sales price of \$ 95,000, the company must be able to sell 7000 units.

If the number of sales is not up to 7,000 units, it will not cover the production costs that have been spent.

By knowing when the company passes the BEP level, you will also be able to calculate how many minimum sales to get the profit you are targeting.

As a manager or business owner, you can add the targeted profit with the fixed costs you have.

For example, the profit target of a month is \$ 60 million, the minimum sales must be achieved are as follows:

Profit = (fixed cost + profit target) / (price / unit - variable / unit) BEP - profit = (\$ 140,000,000 + \$ 60,000,000) (\$ 95,000 - \$ 75,000)

BEP - Profit = \$ 200,000,000 / \$ 20,000

BEP - profit = 10,000/unit

Using how to calculate the BEP BREAK event point or the correct impact point in a business is very important.

Especially to determine the sales target that must be fulfilled to benefit the business.

Break Event Point can be used as an ingredient to evaluate any investment from the marketing campaign that has been done.

This is because it is related to marketing program costs, analyzing the company's ability to consumer demand for a product.

This analysis instills discipline into marketing decision-making, then seeing opportunities for how much it is possible to succeed.

Then how to calculate, how to find BEP, how to calculate the BEP BreakPoint, Point Unit, the production of products in business can be easier?

Well, now you understand how to calculate, how to find a BEP, how to calculate the BEP BreakPoint, Point Unit, Dollar Production in Business.

Hopefully, this information can be useful for those of you who need it. Don't forget to be distributed to social media ok.