In cost accounting, what term defines the point at which total revenue equals total costs, yielding zero operating profit?

Explanation

• The Break-Even Point (BEP) occurs when Total Revenue equals total expenses ($ ext{Fixed Costs} + ext{Variable Costs}$).
• Formula in units: $text{BEP} = frac{text{Fixed Costs}}{text{Selling Price per Unit} – text{Variable Cost per Unit}}$.
• Sales achieved beyond the break-even point generate operating profit equivalent to the contribution margin per additional unit.