The break-even quantity is a. Fixed Costs/Marginal Cost b. Contribution Margin/Fixed Costs c. Fixed Costs/Price d. Fixed Costs/(Price – Marginal Costs)

Question

asked May 20, 2021 201k views

1 Answer

Afuous · Answer 1 · 2021-05-26T09:50:06+0000

Answer:

d. Fixed Costs/(Price – Marginal Costs)

Step-by-step explanation:

The break-even quantity is the number of units produced and sold at which net income is zero. it is the point at which revenues equals cost.

Break even quantity = Fixed Costs/(Price – Marginal Costs)

or Fixed cost / contribution margin