The basic formula for calculating break even is
A) FC/(P -VC).
B) VC/(FC -P).
C) FC/(VC -P).
D) P/(FC -VC).
E) VC/(P -FC).

Question

Quizplus · Accepted Answer

The basic formula for calculating the break-even point in units is fixed costs (FC) divided by the selling price per unit (P) minus the variable cost per unit (VC), which is represented as FC/(P - VC). This formula calculates how many units need to be sold to cover all fixed costs, reaching a point where the business neither makes a profit nor incurs a loss.

The Basic Formula for Calculating Break Even Is