Breakpoint is called as when the prodution reched to cost. then production is reched to cost only u can get the no profit and no loss . BEP sales tells that sales is reached to cost then only u can get the no loss and no profit.
BEP is a point when company is at the position of no profit no loss.in LC-CURVE it is the highest point.Whenever a company comes in existance in the starting it is investing more and earning less slowly slowly it comes in the position when saturation state comes means its expences are equals to its earnings.this state is actually known as BEP.
Break Even Point is a point where there is no profit and no loss . It is very important for every company to take managerial decisions like how much quantity to be sold to gain desired profit how many units to be sold to get the desired profit to find margin of safety etc.
