The breakeven equation can be expressed as: Fixed Costs / Contribution Margin per unit Fixed Costs / Contribution Margin per unit and Fixed Costs/(Sales Price per unit - Variable costs per unit) Fixed Costs / Profit Fixed Costs/(Sales Price per unit - Variable costs per unit)

Accounting Dec 03, 2020

Expert Solution

Correct Answer is Option C

i.e Breakeven Equation is

Fixed Cost/ Contribution Margin per unit Or Fixed Cost/(sales price per unit-Variable Cost per unit)

Reasoning

Contribution Margin is Salesprice per unit- Variable Cost Per Unit. Hence both are same.

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