In Order to Calculate Break-Even Sales Units,fixed Costs Are Divided

question 78

Multiple Choice

In order to calculate break-even sales units,fixed costs are divided by the:

• A)Contribution margin per unit.
• B)Contribution margin percentage.
• C)Target operating income.
• D)Sales volume.

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Definitions:

Depreciation

The process of allocating the cost of a tangible asset over its useful life.

Straight-Line Basis

An accounting method of depreciation where the value of an asset is reduced evenly over its useful life.

Salvage Value

The projection of an asset's resale value after it ceases to be of use.

Gain or Loss

The financial outcome resulting from the sale of assets or securities, determined by the difference between the sale price and the original purchase price.