If Q equals the level of output,P is the selling price per unit,V is the variable expense per unit,and F is the fixed expense,then the break-even point in units is:
A)Q $\div$ (P-V).
B)F $\div$ (P-V).
C)V $\div$ (P-V).
D)F $\div$ [Q(P-V)].

Question

If Q equals the level of output,P is the selling price per unit,V is the variable expense per unit,and F is the fixed expense,then the break-even point in units is:
A)Q $\div$  (P-V).
B)F $\div$  (P-V).
C)V $\div$  (P-V).
D)F $\div$  [Q(P-V)].

Quizplus · Accepted Answer

The formula for break-even point in units is: F/(P-V). Therefore, the correct answer is B.

If Q Equals the Level of Output,P Is the Selling ÷\div÷

If Q Equals the Level of Output,P Is the Selling $\div$