The break-even point in units is:
A)total costs divided by variable costs per unit.
B)contribution margin per unit divided by revenue per unit.
C)fixed costs divided by contribution margin per unit.
D)(fixed costs plus variable costs)divided by contribution margin per unit.

Question

Quizplus · Accepted Answer

The break-even point occurs where the total contribution margin equals the total fixed costs. Therefore, the break-even point in units is calculated by dividing the total fixed costs by the contribution margin per unit, which is option C.

The Break-Even Point in Units Is