Which of the Following Formulas Is Used to Calculate the Breakeven

question 22

Multiple Choice

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

• 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 sales dollars.

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Definitions:

Social Cognitive Theory

A theory that suggests learning occurs in a social context with a dynamic and reciprocal interaction of the person, environment, and behavior.

Awareness

The state or ability to perceive, feel, or be conscious of events, objects, or sensory patterns.

Self-Regulation

The ability of an individual or organization to monitor and control their behaviors, actions, or thoughts to achieve certain goals.

Discrepancy

A lack of compatibility or uniformity that leads to a difference between two or more things, such as expectations versus reality.