Which of the Following Formulas Is Used to Calculate the Break-Even

question 51

Multiple Choice

Which of the following formulas is used to calculate the break-even point in terms of sales pounds

• A)Fixed expenses/Unit contribution margin
• B)Variable expenses/Contribution margin ratio
• C)Fixed expenses/Contribution margin ratio
• D)Net operating income/Unit contribution margin

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Definitions:

Economy Regulation

The imposition of rules by the government intended to modify the economic behavior of individuals, firms, or industries to achieve policy outcomes.

Unfunded Liability

A financial obligation or promised benefit for which sufficient funds have not been set aside, often relating to pensions or other post-employment benefits.

U.S. Federal Government

The national government of the United States, consisting of three branches: legislative, executive, and judicial.

Medicare

A federal program that provides for (1) compulsory hospital insurance for senior citizens, (2) low-cost voluntary insurance to help older Americans pay physicians’ fees, and (3) subsidized insurance to buy prescription drugs. Financed by payroll taxes.