The break-even point can be expressed as:

Question

Quizplus · Accepted Answer

The break-even point can be calculated by dividing the fixed costs by the contribution margin per unit (which is calculated by subtracting the variable cost per unit from the sales price per unit), or by dividing the fixed costs by the contribution margin ratio (which is calculated by dividing the contribution margin per unit by the sales price per unit). Therefore, choice B, fixed costs/(contribution per unit/sales per unit), is the best expression for the break-even point.

The Break-Even Point Can Be Expressed As