The Formula for the Break-Even Point Is

question 138

Multiple Choice

The formula for the Break-even Point is:

• A) (Total Fixed Costs + Profit Objective) divided by (1 - Variable Cost%)
• B) (Total Variable Costs) divided by (1-Fixed Cost%).
• C) (Total Variable Costs% + Profit Objective%) divided by (Total Fixed Costs)
• D) (Total Fixed Costs + Profit Objective) divided by (1 - Variable Cost%).
• E) (Total Fixed Costs) divided by (1 - Variable Cost%)

---

Definitions:

Production Cost Report

A detailed report outlining the total cost and production quantities of goods during a specific period.

Conversion Cost

The combined costs of direct labor and manufacturing overheads that are incurred to convert raw materials into finished goods.

Work In Process

Inventory that includes items in production but not yet completed, representing a stage between raw materials and finished goods.

Unit Conversion Cost

The cost associated with converting raw materials into a finished product on a per-unit basis.