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

Question

Quizplus · Accepted Answer

The break-even point is calculated as fixed costs divided by the contribution margin per unit. This formula determines the number of units that must be sold to cover all fixed costs, at which point the business neither makes a profit nor incurs a loss.

The Break-Even Point Can Be Calculated as