The breakeven equation can be expressed as:
A) Fixed Costs / Contribution Margin per unit.
B) Fixed Costs / (Sales Price per unit - Variable costs per unit).
C) Fixed Costs / Profit.
D) a and b

Question

Quizplus · Accepted Answer

The breakeven equation is correctly expressed as both A) Fixed Costs / Contribution Margin per unit and B) Fixed Costs / (Sales Price per unit - Variable costs per unit), since the contribution margin per unit is defined as Sales Price per unit minus Variable costs per unit.

The Breakeven Equation Can Be Expressed As