What is the formula for the break-even point of a simple profit model?
A)Fixed Cost / Variable Cost Per Unit
B)(Selling Price Per Unit - Variable Cost Per Unit)/ Fixed Cost
C)Fixed Cost / (Selling Price Per Unit - Variable Cost Per Unit)
D)Fixed Cost / (Variable Cost Per Unit - Selling Price Per Unit)
E)Selling Price Per Unit - (Fixed Cost / Variable Cost Per Unit)

Question

Quizplus · Accepted Answer

The formula for break-even point is Fixed Cost / (Selling Price Per Unit - Variable Cost Per Unit). This formula calculates the number of units that need to be sold in order to cover all the fixed costs and variable costs associated with producing and selling the product.

What Is the Formula for the Break-Even Point of a Simple