In order to calculate break-even sales units,fixed costs are divided by the:
A)Contribution margin per unit.
B)Contribution margin percentage.
C)Target operating income.
D)Sales volume.

Question

Quizplus · Accepted Answer

Break-even sales units can be calculated by dividing fixed costs by the contribution margin per unit. This is because once the contribution margin per unit covers the fixed costs, any additional units sold will result in profit.

In Order to Calculate Break-Even Sales Units,fixed Costs Are Divided