Breakeven point calculation = (Fixed Costs + Amortization) ÷ (Sales – Mat. – Labor)
The breakeven point BEP is part of the financial operating ratios. It helps to analyse the quality of the management and in decision-making during simulation.
It corresponds at the level of turnover to which a company does not realize either a loss or a profit, which means a 0 result. It is the limit from which the activity becomes profitable.