The formula used to find the number of units that need to be sold in order to break even or generate a target profit is

Question

Quizplus · Accepted Answer

The formula to find the number of units that need to be sold to break even or generate a target profit is (fixed expenses + operating income) ÷ contribution margin per unit. This formula takes into account the fixed expenses, the operating income, and the contribution margin per unit. By dividing the total fixed expenses and operating income by the contribution margin per unit, the number of units that need to be sold can be calculated. Choice B represents this formula accurately.

The Formula Used to Find the Number of Units That