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A bicycle manufacturer wants to know how many bicycles it must sell to break even. The break-even point (i.e. number of bicycles) is found by dividing total fixed expenses by: A) the contribution margin ratio percentage. B) the variable expenses dollar amount per bicycle. C) the sales price dollar amount per bicycle. D) the contribution margin dollar amount per bicycle.

User VitalyP
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Answer:

The contribution margin dollar amount per bicycle.

Step-by-step explanation:

The break-even point refers to the point in which the costs and the earnings are equal which means that you don't lose or gain money. To calculate the break-even point on units, you have to divide the fixed costs by the contribution margin and the contribution margin is equal to the price of the product per unit minus the variable costs per unit.

According to this, the answer is that the break-even point (i.e. number of bicycles) is found by dividing total fixed expenses by: the contribution margin dollar amount per bicycle.

User Roei Bahumi
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