The break-even quantity can be determined by dividing the fixed costs by the difference between the revenue per unit and the variable cost per unit.

Question

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The break-even quantity is calculated by dividing the total fixed costs by the difference between the unit selling price (revenue per unit) and the variable cost per unit, which represents the contribution margin per unit. This calculation shows how many units need to be sold to cover all fixed costs, reaching a point where the business neither makes a profit nor incurs a loss.

The Break-Even Quantity Can Be Determined by Dividing the Fixed