Which One of the Following Calculates the Break-Even Point in Units

question 42

Multiple Choice

Which one of the following calculates the break-even point in units?

• A)Divide total fixed costs by the contribution margin per unit.
• B)Divide fixed cost per unit by the contribution margin per unit.
• C)Divide total contribution margin by the number of units sold.
• D)Divide total fixed costs by the contribution margin ratio.

---

Definitions:

Fiscal Period

A specific duration of time used for financial reporting and budgeting purposes, typically a year, quarter, or month.

Working Papers

Documents that serve as preliminary reports or studies, often used in academic or professional research to share ideas and findings before formal publication.

Audit Documents

Papers and records reviewed during an audit to assess the accuracy and compliance of financial statements and practices.

Engagement Letter

A written agreement that outlines the scope of work, terms, and responsibilities between a professional service provider and their client.