Which of the following is the formula for calculating breakeven point?
A) Fixed Costs/(Price - Variable Costs)
B) Fixed Costs - Variable Cost/Price
C) (Fixed Costs/Variable Costs) - Price
D) (Fixed Costs/Price) - Variable Costs
E) Fixed Cost - (Price + Variable Costs)

Question

Quizplus · Accepted Answer

The formula for calculating the breakeven point is Fixed Costs / (Price - Variable Costs). This formula takes into account the fixed costs, variable costs per unit, and the selling price per unit. By dividing the fixed costs by the difference between the selling price and variable costs, we can determine the number of units that need to be sold in order to cover all costs and break even.

Which of the Following Is the Formula for Calculating Breakeven