The break-even point can be calculated as
A) variable costs divided by contribution margin.
B) total costs divided by contribution margin.
C) variable cost times contribution margin.
D) fixed cost divided by contribution margin.

Question

Quizplus · Accepted Answer

The break-even point is calculated by dividing fixed costs by the contribution margin per unit. This determines the number of units needed to cover all fixed costs.

The Break-Even Point Can Be Calculated as