Break-even sales volume in units is determined by:
A)Dividing the fixed cost by the difference between the unit selling price and unit variable costs.
B)Subtracting the fixed cost from the contribution margin.
C)Dividing the fixed cost by the unit selling price.
D)Subtracting the variable cost per unit from the unit selling price.

Question

Quizplus · Accepted Answer

Break-even sales volume in units is determined by dividing the fixed cost by the difference between the unit selling price and unit variable costs. This formula calculates the number of units that must be sold in order to cover the total fixed costs of the business.

Break-Even Sales Volume in Units Is Determined By