Break-Even Point

Cost Accounting

MS: Titik Pulang Modal · EN: Break-Even Point · ZH: 盈亏平衡点

Meaning

The break-even point is the level of sales or production at which total revenue equals total cost, so the firm makes neither a profit nor a loss. At this point, total contribution equals total fixed cost. It is calculated by dividing fixed cost by contribution per unit.

Example

Enak Burger Stall has fixed cost of RM4,000 and contribution of RM5 per unit. The break-even point is RM4,000 ÷ RM5 = 800 units. Selling 800 burgers means it breaks even, with no profit or loss.

Source: DSKP KSSM Prinsip Perakaunan Tingkatan 5

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