Question
Break Even Point (BEP) is the level of EBIT at
whichSolution
When the Fixed Financial Expense = EBIT, resulting into zero Earnings available for equity shareholders, that level of EBIT is known as Financial Break Even Point. For Example,  Sales                                              Rs.5000  Variable Costs                                Rs.3500  Fixed Cost                                      Rs.1000  EBIT                                                Rs.500  Interest cost                                    Rs.500  Profit                                               Rs.0 (Break Even Point)
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