The break-even is the level of sales at which your total sales exactly covers your total costs and operating expenses. This level of sales is called the Break-Even Point Sales Level (BEP sales).
In other words, at the BEP sales level, you will make a zero profit. If you sell more than the BEP sales level, you will make a net profit. If you sell less than the BEP sales level, you will have a net loss.
The worksheet will calculate your BEP sales level for any year of operations. The steps listed below will assume that you are
calculating the BEP sales level for Year 1.