Total fixed costs divided by the product's contribution margin gives us:
A) breakeven point in units.
B) total profit.
C) total variable costs.
D) average total cost.

Question

Quizplus · Accepted Answer

The breakeven point in units is calculated by dividing the total fixed costs by the product's contribution margin per unit. This shows how many units need to be sold to cover all fixed costs.

Total Fixed Costs Divided by the Product's Contribution Margin Gives