Which of the following is an equation to determine the break-even point (BEP)in units?
A)BEP = fixed cost / selling price per unit - variable cost per unit)
B)BEP = fixed cost / (selling price per unit - variable cost per unit)
C)BEP = variable cost / (selling price per unit - fixed cost)
D)BEP = variable cost / (fixed cost - selling price per unit)
E)BEP = fixed cost / (selling price per unit + variable cost per unit)

Question

Quizplus · Accepted Answer

The equation for calculating the break-even point (BEP) in units is BEP = fixed cost / (selling price per unit - variable cost per unit). This formula takes into account the fixed costs, selling price per unit, and variable costs per unit to calculate the number of units that must be sold to break even. Therefore, the best choice is B.

Which of the Following Is an Equation to Determine the Break-Even