Breakeven point in units is ________.
A) total costs divided by profit margin per unit
B) contribution margin per unit divided by total cost per unit
C) fixed costs divided by contribution margin per unit
D) the sum of fixed and variable costs divided by contribution margin per unit

Question

Quizplus · Accepted Answer

The breakeven point in units is the number of units a company needs to sell in order to cover its fixed costs. This can be calculated by dividing the fixed costs by the contribution margin per unit. Choice C is the correct formula for calculating breakeven point in units.

Breakeven Point in Units Is ________