The break-even number of units equals fixed costs divided by:
A) selling price per unit.
B) contribution margin per unit.
C) total contribution margin.
D) variable cost per unit.

Question

Quizplus · Accepted Answer

The break-even number of units can be calculated by dividing the fixed costs by the contribution margin per unit. The contribution margin per unit is the difference between the selling price per unit and the variable cost per unit. Therefore, the correct choice is B, contribution margin per unit.

The Break-Even Number of Units Equals Fixed Costs Divided By