The break-even point in units is represented by the equation? (a) Fixed costs / Variable costs (b) Fixed costs / selling price per unit (c) (Sales revenue - Fixed costs) / Contribution per unit (d) Fixed costs / Contribution per unit
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Subject:
Business Studies -
Author:
cadenceperkins -
Created:
1 year ago
Answers 2
Explanation:
Break-even price is calculated by using this formula = (Total fixed cost/Production unit volume) + Variable Cost per unit.
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Author:
gilliand8ff
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It is denoted by Fixed costs / Contribution per unit.
- It is the moment at which total cost and income are equal, demonstrating that the business is profitable.
- There is no possible benefit or loss.
- It is represented as - BEP = Fixed costs / Contribution per unit.
- At this stage, consumption equals a significant amount of money.
- Although at this point the risk-adjusted anticipated return has been reached, the cost of chance has been paid.
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