Break even point

From ACT Wiki
Revision as of 14:11, 23 October 2012 by imported>Administrator (CSV import)
(diff) ← Older revision | Latest revision (diff) | Newer revision → (diff)
Jump to navigationJump to search

1. (BEP). The number of units of production at which contribution is equal to total fixed cost, in other words this is the level of production at which a producer will neither earn a profit nor make a loss.

2. The market price at which a strategy results in neither a profit nor a loss.

3. A point - however measured - at which two alternative strategies give the same result. It is therefore the point of indifference between two choices or strategies. For example two trading strategies each resulting in the same expected profit. So when the breakeven point is crossed, the optimum decision or choice will change.

See also