The break-even point is equal to fixed costs divided by (sales price per unit —

Question

The break-even point is equal to

fixed costs divided by (sales price per unit — variable cost per unit).

fixed costs divided by unit variable costs.

(sales price per unit — variable cost per unit) times the fixed costs.

fixed costs divided by selling price per unit.

fixed costs divided by (sales price per unit — variable cost per unit).

fixed costs divided by unit variable costs.

(sales price per unit — variable cost per unit) times the fixed costs.

fixed costs divided by selling price per unit.

Explanation / Answer

fixed costs divided by (sales price per unit — variable cost per unit)

Formula to calculate Break Even point is = Fixed cost / Contribution Per Unit

Contribution per Unit = Sales Price per Unit - Variable Cost per Unit

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