Which of the following statements about determining the breakeven point is FALSE?
A)Operating income is equal to zero.
B)Contribution margin - fixed costs is equal to zero.
C)Revenues equal fixed costs plus variable costs.
D)Breakeven revenues equal fixed costs divided by the variable cost per unit.

Question

Quizplus · Accepted Answer

The breakeven revenues are calculated by dividing the fixed costs by the contribution margin ratio, not by the variable cost per unit.

Which of the Following Statements About Determining the Breakeven Point