Only the unit contribution margin approach may be used to calculate the breakeven point.

Name: Only the unit contribution margin approach may be used to calculate the breakeven point.
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Question

Quizplus · Accepted Answer

The total contribution margin approach can also be used to calculate the breakeven point. In this approach, the total contribution margin (sales - variable costs) is divided by the total fixed costs to determine the breakeven point in sales dollars or units.

Only the Unit Contribution Margin Approach May Be Used to Calculate