Which of the Following Is the Correct Formula for the Break-Even

question 31

Multiple Choice

Which of the following is the correct formula for the break-even sales volume?

• A)Fixed costs divided by the variable costs per unit.
• B)Fixed costs divided by the contribution margin per unit.
• C)Variable costs divided by the contribution margin per unit.
• D)Variable costs divided by the fixed costs per unit.

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Definitions:

Inconsistent

Being inconsistent means lacking uniformity or steadiness, often leading to unpredictability or variability in actions, results, or performance.

Baseball Team

A group of players forming one side in competitive baseball games.

Idle Production Capacity

refers to resources, especially in manufacturing, that are not currently in use or are underused, affecting the efficiency and profitability of a business.

Off-Peak Pricing

Charging different prices during different times of the day or during different days of the week to reflect variations in demand for the service.