Solved

Which of the Following Formulae Is Correct When Using the Contribution

Question 2

Multiple Choice

Which of the following formulae is correct when using the contribution margin method to determine the break-even point?


A) Revenues less operating income equal variable costs plus fixed costs.
B) Unit contribution margin times unit variable cost equals the break-even number of units.
C) Unit contribution margin times the break-even number of units equals total variable costs.
D) Selling price less unit contribution margin equals unit fixed cost for all values below or at the break-even number of units.
E) Unit contribution margin times the break-even number of units equals fixed costs.

Correct Answer:

verifed

Verified

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents