The break-even point (BEP)= [Fixed cost / (Unit price - __________)].
A) Total cost
B) Total expense
C) Marginal revenue
D) Unit variable cost
E) Total number of units produced or quantity

Question

Quizplus · Accepted Answer

The break-even point formula is BEP= [Fixed cost ÷ (Unit price - Unit variable cost)]. The option that completes the formula is D, which represents the unit variable cost. The break-even point is the point at which the total revenue equals total costs, and knowing the unit variable cost is essential to calculate the break-even point. The other options are not used in the break-even point formula.

The Break-Even Point (BEP)= [Fixed Cost / (Unit Price -