Identify the algebraic equation to determine the break-even point.
A)BE = VC/(P-FC)
B)BE = P/ (FC-VC)
C)BE = C/R
D)BE = (P-VC)/(FC-VC)
E)BE = FC/(P-VC)

Question

Quizplus · Accepted Answer

The break-even point (BE) is calculated as the fixed costs (FC) divided by the price per unit (P) minus the variable cost per unit (VC). This gives the number of units needed to sell to cover all costs, hence option E is correct.

Identify the Algebraic Equation to Determine the Break-Even Point