The formula for calculating

Question

Quizplus · Accepted Answer

This formula represents the breakeven point in units, which is the number of units a company needs to sell in order to cover their fixed costs and achieve a desired operating income. The formula takes into account the total fixed costs, the desired operating income, and the contribution margin per unit, which is the amount that each unit contributes towards covering the fixed costs and achieving the desired operating income. Dividing the total fixed costs plus target operating income by the contribution margin per unit gives the number of units a company needs to sell to achieve their target operating income.

The Formula for Calculating