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From Wikipedia

Break-even

Break-even (or break even) is a point where any difference between plus or minus or equivalent changes side.

## In economics

In economics& business, specifically cost accounting, the break-even point (BEP) is the point at which cost or expenses and revenue are equal: there is no net loss or gain, and one has "broken even". A profit or a loss has not been made, although opportunity costs have been paid, and capital has received the risk-adjusted, expected return.

## In other fields

In nuclear fusion research, the term breakeven refers to a fusion energy gain factor equal to unity, this is also known as the Lawson criterion.

The notion can also be found in more general phenomena, such as percolation, and is rather similar to the critical threshold. In energy, the breakeven point is the point where usable energy gotten from a process exceeds the input energy.

In computer science, the (less usual) term refers to a point in the life cycle of a programming language where the language can be used to code its own compiler or interpreter. This is also called self-hosting.

In medicine, it is a postulated state when the advances of medicine permit every year an increase of one year or more of the life expectancy of the living, therefore leading to medical immortality (barring accidental death).

Question:My algebra is a little rusty. Using a random example of say phone rates what would be the break even point for two different rate plans. Plan A: $5 per month +$.05 per minute. Plan B: $.16 per minute. So that would be 5 + .05x = .16x where x = number of minutes, the break even point, right? Assuming I have the formula right what would then be the steps (please include any algebraic rules/laws) for solving for x. Thanks! Answers:Yes, that's the breakeven point. The breakeven point is the point at which neither option is better than the other (when the two plans have the same cost). 5 + .05x = .16x subtract .05x from both sides of the equal sign: 5 + .05x -.05x= .16x -.05x 5 = .11x divide both sides by .11 to get x alone by itself on one side of the equal sign. 5 = .11x 5/.11 = .11x/11 5/.11 = x 45.45 = x 45.45 minutes is the breakeven point this is 45 minutes, 27 seconds Question:a cookie store owner spends 2 dollars on each cookie and 30 dollars on additional expenses. she sells each cookie for 3 dollars. find the break even point. help? Answers:x - minimum number of cookies so she can profit 3x - 2x - 30 = 0 x=30 Question:I am using Business Plan Pro 2007 and it is giving me a negative monthly Revenue Break Even point even though all the other figures are correct. So, I may have to do it myself. Note: This is an internet site that ONLY sells advertising - however, dozens of different prices for the advertising. Important Note: This is for a startup company, so no hard figures are available, I only have projections. Thanks for your help. Answers:I'm glad to hear that you're using Business Plan Pro 2007 but sad to hear that you're having problems with it calculating your Break Even point. One thing that you might try in Business Plan Pro is to reset the default formulas in the Break Even table so that it is pulling the correct data from your Sales Forecast and Profit and Loss to calculate the break even point. You can reset the default formulas by right clicking in the Break Even table and choosing Formula Reset > Table. If you're still having problems with it calculating a negative break even point, you might have an unusual forecast like a partial year for the first year in the plan. In that case, you'll be better served by doing your own Break Even point. It's usually calculated by taking the following: Fixed Cost (1-(Unit variable Costs/Unit Price)) Where: Unit Price - The price that you charge per unit. Take into account sales discounts and special offers. For non-unit based businesses, make the per-unit revenue$1 and enter your costs as a percent of a dollar. Unit variable cost - The incremental cost of each unit of sale. If you are using a Units-Based Sales Forecast table (for manufacturing and mixed business types), you can project unit costs from the Sales Forecast table. If you are using the basic Sales Forecast table for retail, service and distribution businesses, use a percentage estimate. For example, a retail store running a 50% margin would have a per-unit cost of .5, and a per-unit revenue of 1. Fixed costs - Technically, a break-even analysis defines fixed costs as costs that would continue even if you went broke. Instead, you may want to use your regular running fixed costs, including payroll and normal expenses. This will give you a better insight on financial realities. This information is available online in the HurdleBook at: http://www.hurdlebook.com/ Here's a selection of Break Even articles: http://tinyurl.com/2bdspk (sorry, I had to make it a TinyURL, Yahoo Answers didn't like it) Lastly, we do have a free "Break Even" calculator available if you want to use it instead. You can find that on our www.Bplans.com site at: http://www.bplans.com/common/calculators/breakeven.cfm