The BEP, in units, can be found by dividing
A) total fixed costs by the fixed cost contribution per unit.
B) total variable costs by the variable cost contribution per unit.
C) total variable costs by the fixed cost contribution per unit.
D) the assumed selling price per unit by the variable cost per unit.
E) total variable costs by target return.

Question

Quizplus · Accepted Answer

The BEP is the point where total revenue equals total cost, specifically where the contribution margin (selling price per unit minus variable cost per unit) equals fixed costs. Therefore, the BEP in units can be found by dividing total fixed costs by the fixed cost contribution per unit.

The BEP, in Units, Can Be Found by Dividing