The break-even point (BEP) = [Fixed cost ÷ (Unit price − ________)].
A) Total cost
B) Total expense
C) Marginal revenue
D) Unit variable cost
E) Total number of units produced or quantity

Question

Quizplus · Accepted Answer

The break-even point formula is calculated by dividing the fixed costs by the difference between the unit price and the unit variable cost. This difference is known as the contribution margin per unit.

The Break-Even Point (BEP) = [Fixed Cost ÷ (Unit Price