Final answer:
The break-even sales level in units is calculated using the formula FC/(SP-VC), where FC is fixed costs, SP is selling price per unit, and VC is variable cost per unit.
Step-by-step explanation:
The break-even sales level in units is found by dividing total fixed costs by the selling price per unit minus the variable cost per unit. So the correct formula is d. FC/(SP-VC).
At the break-even point, total revenue equals total costs, which means there is no profit or loss. The selling price per unit (SP) multiplied by the number of units sold equals total revenue, and at the break-even point, this must equal the sum of total fixed costs (FC) and total variable costs (variable cost per unit (VC) multiplied by the number of units).
The formula for break-even in units simplifies to units = FC / (SP - VC). This equation helps businesses determine how many units they must sell at a particular price to cover all their expenses.