Philip James asks you to calculate the breakeven point for him.You need which information from him to do so?
A) Euro values for all assets and owners' equity
B) Fixed costs, operating expenses, and net income
C) Euro values for all assets and all liabilities
D) Unit costs and fixed costs
E) Variable costs per unit, fixed costs, and unit selling price

Question

Quizplus · Accepted Answer

In order to calculate the breakeven point, we need to know the variable costs per unit (the costs that vary with the level of production), fixed costs (the costs that remain constant regardless of the level of production), and the unit selling price. With this information, we can determine how many units need to be sold in order to cover all costs and reach the breakeven point. Therefore, the correct choice is E.

Philip James Asks You to Calculate the Breakeven Point for Him.You