Breakeven point using the contribution margin approach


Breakeven point using the contribution margin approach is calculated by:

a.) Adding fixed and variable costs and dividing by the sales price per unit.

b.) Subtracting variable costs from sales price and dividing that number by the selling price per unit.

c.) Subtracting variable costs from the selling price, adding fixed costs, and dividing by the number of units produced.

d.) Subtracting variable costs per unit from selling price per unit and dividing that number into total fixed costs.

e.) A & C only

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Accounting Basics: Breakeven point using the contribution margin approach
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