Question

The break-even quantity is a. Fixed Costs/Marginal Cost b. Contribution Margin/Fixed Costs c. Fixed Costs/Price d. Fixed Costs/(Price – Marginal Costs)

Answer 1

Answer:

d. Fixed Costs/(Price – Marginal Costs)

Explanation:

The break-even quantity is the number of units produced and sold at which net income is zero. it is the point at which revenues equals cost.

Break even quantity = Fixed Costs/(Price – Marginal Costs)

or Fixed cost / contribution margin