To calculate the break-even point for a retail store, the unit contribution margin is more useful than the PV ratio.

Name: To calculate the break-even point for a retail store, the unit contribution margin is more useful than the PV ratio.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

The PV (Profit-Volume) ratio, which is the contribution margin ratio, is more useful for calculating the break-even point as it relates the contribution margin to sales, allowing for a direct calculation of the break-even sales volume.

To Calculate the Break-Even Point for a Retail Store, the Unit