Which of the following are necessary assumptions when using the contribution margin method of determining the break-even point?
A)Average unit costs must be known.
B)There must be an input-related cost driver.
C)Fixed costs are irrelevant.
D)Total variable cost must be known.
E)Unit selling price and unit variable cost must be known.

Question

Quizplus · Accepted Answer

To use the contribution margin method, both the unit selling price and unit variable cost must be known in order to calculate the contribution margin per unit.

Which of the Following Are Necessary Assumptions When Using the Contribution