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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)

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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

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