Which of the following formulas is used to calculate break-even point in units? a.Break-even point in units = Total fixed costs / (Price − Unit variable cost) b.Break-even point in units = Total costs / Unit contribution margin c.Break-even point in units = Sales / Unit variable cost d.Break-even point in units = Sales / Fixed costs
Which of the following formulas is used to calculate break-even point in units? a.Break-even point in units = Total fixed costs / (Price − Unit variable cost) b.Break-even point in units = Total costs / Unit contribution margin c.Break-even point in units = Sales / Unit variable cost d.Break-even point in units = Sales / Fixed costs
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Which of the following formulas is used to calculate break-even point in units?
a.Break-even point in units = Total fixed costs / (Price − Unit variable cost)
b.Break-even point in units = Total costs / Unit contribution margin
c.Break-even point in units = Sales / Unit variable cost
d.Break-even point in units = Sales / Fixed costs
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