In the linear breakeven model,the breakeven sales volume (in dollars)can be found by multiplying the breakeven sales volume (in units)by:
A) one minus the variable cost ratio
B) contribution margin per unit
C) selling price per unit
D) standard deviation of unit sales
E) none of the above

Question

Quizplus · Accepted Answer

The breakeven sales volume in dollars is found by multiplying the breakeven sales volume in units by the selling price per unit. This gives the total sales revenue needed to cover all fixed and variable costs, reaching the breakeven point.

In the Linear Breakeven Model,the Breakeven Sales Volume (In Dollars)can