The Break-Even Point in Units Is

question 128

Multiple Choice

The break-even point in units is:

• A)total costs divided by variable costs per unit.
• B)contribution margin per unit divided by revenue per unit.
• C)fixed costs divided by contribution margin per unit.
• D)(fixed costs plus variable costs)divided by contribution margin per unit.

---

Definitions:

Unit Product Cost

The cost computed for a single unit, encompassing all direct materials, direct labor, and both variable and fixed overheads.

Break-Even

A situation where cumulative expenses and revenues balance out, leaving no profit or loss.

Sales Dollars

The total revenue generated from goods or services sold by a company, measured in dollars.

Common Fixed Expenses

Expenses that do not vary with production volume and are shared across different segments or products of a business.