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me > My courses ACCT-103-30889-201806> Topic 4 Decision-Making Tools > Test 4A Question 2 Natyst answered Paints oue of 100 r Flag question Break-even in units equals: (SP- Selling price. VC- Variable Cost per Unit. FC- Total Fixed Costs, CM- Contribution Margin per unit) Select one: OB. FC/CM e . ?.FCNC D. CM/FC e here to search

Solution

SOLUTION

Question - 2

Breakeven in units equal- FC / CM

The breakeven point for a product is the point where total revenue received equals total costs associated with the sale of the product.

The break-even point is calculated by dividing the business’s fixed expenses by its margin.