Which of the following best represents the formula for the breakeven point?
A) total variable costs divided by (price plus fixed costs)
B) total fixed costs divided by (price plus variable costs)
C) total revenue divided by (price minus fixed costs)
D) total fixed costs divided by (price minus variable costs)

Question

Quizplus · Accepted Answer

The breakeven point is calculated by dividing total fixed costs by the difference between price and variable costs, which represents the contribution margin per unit.

Which of the Following Best Represents the Formula for the Breakeven