Which of the Following Formulas Is Used to Calculate the Breakeven

question 116

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:

Balancing the Budget

The process of adjusting income and expenditure so that they equal each other, resulting in no deficit or surplus.

Classical Economists

Economists from the 18th and 19th centuries who advocated for free markets, minimal government intervention, and believed in the theory of self-regulating economies.

Quantity of Money

The total amount of money in circulation or in existence within an economy at a given time.

Interest Rate

The price, in terms of a percentage of the principal, a borrower incurs from a lender to utilize assets.