When calculating the breakeven point in terms of units,fixed costs should be divided by the contribution margin ratio.

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

The breakeven point in units is calculated by dividing fixed costs by the contribution margin per unit, not the contribution margin ratio.

When Calculating the Breakeven Point in Terms of Units,fixed Costs