A firm's break-even point in dollars can be found in one calculation using which of the following formulas?
A)FC/CM per unit
B)VC/CM
C)FC/CM ratio
D)VC/CM ratio

Question

Quizplus · Accepted Answer

The break-even point in dollars is found using the formula FC/CM ratio, where FC is fixed costs and CM ratio is the contribution margin ratio. This formula calculates the amount of sales dollars needed to cover all fixed costs.

A Firm's Break-Even Point in Dollars Can Be Found in One