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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TURBULENT
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