The break-even point in units is calculated using
A)fixed expenses and the contribution margin ratio.
B)variable expenses and the contribution margin ratio.
C)fixed expenses and the unit contribution margin.
D)variable expenses and the unit contribution margin.

Question

Quizplus · Accepted Answer

The break-even point in units is calculated by dividing total fixed expenses by the unit contribution margin. This calculation helps determine how many units must be sold in order to cover all of the fixed costs and begin generating a profit. Therefore, fixed expenses and the unit contribution margin are the two variables needed to calculate the break-even point in units.

The Break-Even Point in Units Is Calculated Using