Loss/unit when sales are below the break-even point is equal to
A)(total revenue - total cost)/number of units.
B)selling price.
C)price/unit minus variable cost per unit.
D)EOL.

Question

Quizplus · Accepted Answer

The loss per unit when sales are below the break-even point is calculated as (total revenue - total cost)/number of units, because this formula gives the average loss per unit sold during the period when the total costs exceed the total revenue.

Loss/unit When Sales Are Below the Break-Even Point Is Equal