The break-even point (BEP) formula is fixed costs / [(Unit price-(__________)].
A)total cost
B)total expenses
C)marginal revenue
D)unit variable costs
E)total number of units produced

Question

Quizplus · Accepted Answer

The correct formula for calculating the break-even point is fixed costs / (unit price - unit variable costs). The variable cost per unit is subtracted from the selling price per unit to determine the contribution margin per unit, which covers fixed costs and contributes to profit. Therefore, option D, unit variable costs, is the best choice to complete the formula.

The Break-Even Point (BEP) Formula Is Fixed Costs / [(Unit