Which of the following equations for calculating the break-even point is correct?

Question

Quizplus · Accepted Answer

The correct formula for calculating the break-even point is Total Fixed Costs divided by the difference between Unit Price and Unit Variable Cost, which matches option A. This formula is used to determine the number of units that must be sold to cover all fixed costs, at which point the business starts to generate profit. Option B incorrectly places Total Fixed Costs in the denominator and reverses the fraction.

Which of the Following Equations for Calculating the Break-Even Point Unit price - Unit variable cost ‾\overline { \text { Unit price - Unit variable cost } } Unit price - Unit variable cost ​

Which of the Following Equations for Calculating the Break-Even Point $\overline { \text { Unit price - Unit variable cost } }$