To Find the Sales Revenue Needed to Breakeven, the Formula

question 46

Multiple Choice

To find the sales revenue needed to breakeven, the formula used could be

• A)fixed expenses ÷ contribution margin ratio.
• B)contribution margin per unit ÷ fixed expenses.
• C)contribution margin ratio ÷ fixed expenses.
• D)fixed expenses ÷ contribution margin per unit.

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Definitions:

Writing Requirement

The writing requirement refers to legal stipulations that certain types of agreements or contracts must be documented in written form to be legally valid.

Drawer

A drawer is a person or entity that issues or writes a check or draft, instructing a bank or similar institution to pay a specific amount of money to a designated party.

Drawee

The party on whom a cheque or draft is drawn, responsible for paying the specified amount on the instrument.

Payee

The party in a financial transaction who receives the payment.