Question

What is the formula for calculating UNIT SALES?

1) BE = F / UCM
2) BE = F * UCM
3) BE = F - UCM
4) BE = F + UCM

Answer 1

The formula for calculating unit sales is Unit Sales = Total Revenue / Unit Cost of the Product (UCM). The correct formula from the given options is option 1) BE = F / UCM.

Step-by-step explanation:

The formula for calculating unit sales is:

Unit Sales = Total Revenue / Unit Cost of the Product (UCM)

So, the correct formula from the given options is option 1) Unit Sales = Total Revenue / Unit Cost of the Product (UCM) - BE = F / UCM

Where:

• Total Revenue is the product of the market price and the quantity sold.
• Unit Cost of the Product (UCM) is the cost incurred to produce one unit of the product.
• BE represents the Break-Even point and is the quantity of units at which total revenue equals total costs.
• F represents the fixed costs, which are costs that do not change with the level of output.