The break-even selling price is calculated by dividing the profit desired plus the variable cost per unit times the quantity produced plus the total fixed cost by the quantity produced.

Question

Quizplus · Accepted Answer

This is the correct formula for calculating the break-even selling price. It takes into account both the variable costs and the fixed costs of producing a certain quantity of goods, and sets the selling price at a point where the company can break even and begin to turn a profit.

The Break-Even Selling Price Is Calculated by Dividing the Profit