The equation that will provide the breakeven point in units (SP = selling price) is
A) BE units = (SP - VC) ÷ FC per unit.
B) VC per unit + FC = SP per unit $\times$ BE units.
C) BE units = FC ÷ CM per unit.
D) SP per unit - VC per unit = FC ÷ BE units.

Question

Quizplus · Accepted Answer

The equation BE units = FC ÷ CM per unit provides the breakeven point in units, where FC is the fixed cost, and CM per unit is the contribution margin per unit, which is the selling price per unit minus the variable cost per unit. This formula calculates the number of units that need to be sold to cover the fixed costs of the business.

The Equation That Will Provide the Breakeven Point in Units ×\times×

The Equation That Will Provide the Breakeven Point in Units $\times$