Which of the following are needed to calculate breakeven?
A) Determine the sales price of the product.
B) Estimate the variable cost of the product.
C) Estimate the business' fixed costs.
D) Divide the fixed costs by the contribution margin percentage to calculate the breakeven sales volume.
E) All of the above.

Question

Quizplus · Accepted Answer

All of the above options are necessary in order to calculate the breakeven point. The sales price of the product, the variable cost of the product, and the fixed costs of the business are all key components in determining the contribution margin and ultimately the breakeven point.

Which of the Following Are Needed to Calculate Breakeven