The __________ is calculated by dividing total fixed costs by price minus variable costs.
A) inventory turnover ratio
B) net margin
C) break-even point
D) economic order quantity
E) current ratio

Question

Quizplus · Accepted Answer

The break-even point is calculated by dividing total fixed costs by the price minus variable costs. This calculation shows how many units of a product must be sold to cover the fixed costs associated with making the product.

The __________ Is Calculated by Dividing Total Fixed Costs by Price