Fixed costs divided by the contribution margin per unit equals the breakeven point in unit sales.

Name: Fixed costs divided by the contribution margin per unit equals the breakeven point in unit sales.
Brand: Quizplus
Rating: 4.8 (57 reviews)

Question

Quizplus · Accepted Answer

This is the correct formula to calculate the breakeven point in unit sales, where fixed costs are divided by the contribution margin per unit. The contribution margin is the difference between the unit selling price and the variable cost per unit.

Fixed Costs Divided by the Contribution Margin Per Unit Equals