Philip James asks you to calculate the breakeven point for him. You need which information from him to do so?
A) Dollar values for all assets and owners' equity
B) Fixed costs, operating expenses, and net income
C) Dollar values for all assets and all liabilities
D) Unit costs and fixed costs
E) Variable costs per unit, fixed costs, and unit selling price

Question

Quizplus · Accepted Answer

To calculate the breakeven point, we need to know the amount of revenue needed to cover all of the costs. This requires the knowledge of the fixed costs and variable costs per unit as well as the unit selling price. The other options do not provide the necessary information for a breakeven analysis.

Philip James Asks You to Calculate the Breakeven Point for Him