Break-even Point as Maximum Revenue

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Break-even Point as Maximum Revenue
Broks, Student (Other), Netherlands, Member

Can anyone tell me how to apply the BEP if the business does not want to make a profit but wants to end out on BEP at the end of each year? I have made a budget but am now struggeling with what needs to be done to get the budget to a break-even instead of the profit I have now... Thanks in advance! (...) Read more? Sign up for free 		 

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No More Revenue Than Break-even Point
Jaap de Jonge, Management Consultant, Netherlands

Hi, a regular BEP Analysis is meant to calculate the point at which the gains equal the losses, depending on certain given cash in- and outflows.
In your case the situation is slightly different, because you already know the BEP, because it is at the end of the year. This means you'd have to budget for the total revenues and expenses to match by the end of the year.
 

         
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