The BEP, in units, can be found by dividing
A) total fixed costs by the fixed cost contribution per unit.
B) total variable costs by the variable cost contribution per unit.
C) total variable costs by the fixed cost contribution per unit.
D) the assumed selling price per unit by the variable cost per unit.
E) total variable costs by total fixed costs.

Question

Quizplus · Accepted Answer

The Break-Even Point (BEP) can be found by dividing the total fixed costs by the fixed cost contribution per unit. This calculation gives the number of units that must be sold in order to cover all costs and start generating profits. Therefore, choice A is the correct answer.

The BEP, in Units, Can Be Found by Dividing