When calculating the break-even point in terms of sales revenue, fixed costs should be divided by the contribution margin ratio.

Name: When calculating the break-even point in terms of sales revenue, fixed costs should be divided by the contribution margin ratio.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

The break-even point is calculated by dividing fixed costs by the contribution margin ratio, not multiplying. Therefore, the statement is true.

When Calculating the Break-Even Point in Terms of Sales Revenue