When calculating the breakeven point in terms of sales revenue, variable costs should be divided by the contribution margin ratio.

Name: When calculating the breakeven point in terms of sales revenue, variable costs should be divided by the contribution margin ratio.
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Quizplus · Accepted Answer

The breakeven point in terms of sales revenue is calculated by dividing fixed costs by the contribution margin ratio, not variable costs.

When Calculating the Breakeven Point in Terms of Sales Revenue