Which of the Following Formulas Is Used to Calculate the Breakeven

question 103

Multiple Choice

Which of the following formulas is used to calculate the breakeven point in units?

• A)Total fixed costs divided by contribution margin per unit.
• B)Total fixed costs divided by total contribution margin.
• C)Total fixed costs divided by contribution margin ratio.
• D)None of these formulas calculates the breakeven point in units.

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Definitions:

Equality Of Income

Describes a situation where income is distributed evenly across all members of a society, minimizing the gap between the highest and lowest earners.

Incentive

A motive or condition that encourages or motivates individuals or organizations to act in a certain way.

Produce

Fresh fruits and vegetables that are grown for consumption.

Implicit Marginal Tax Rates

The indirect rates at which additional income is taxed, factoring in the loss of government benefits or subsidies as income increases.