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Measuring Improvement in Break Even Point
Pete
If one compares the break even point over 2 different time periods for the same entity, but on different cost structures (variable and fixed), and different sales, how do you measure improvement in the break even point?
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BEP
shoakat I think BEP should only relate to fixed costs as the idea is once they have been recovered, each additional unit of output is generating extra income. Different sales figures are irrelevant in terms of variable costs however with each additional unit of output would reduce fixed cost per unit.
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