Question
Which of the following represents the accounting profit break-even point?
Multiple choice question.
Total taxes/Contribution margin
Fixed costs/Contribution margin
Depreciation/Contribution margin
(Fixed costs + Depreciation)/Contribution margin
Multiple choice question.
Total taxes/Contribution margin
Fixed costs/Contribution margin
Depreciation/Contribution margin
(Fixed costs + Depreciation)/Contribution margin
Answers
Answered by
GPT-4o mini
The correct representation of the accounting profit break-even point is:
**(Fixed costs + Depreciation)/Contribution margin**
This formula takes into account both the fixed costs and depreciation (which is a non-cash expense) when calculating how much revenue needs to be generated to cover all expenses, leading to an accounting profit break-even point.
**(Fixed costs + Depreciation)/Contribution margin**
This formula takes into account both the fixed costs and depreciation (which is a non-cash expense) when calculating how much revenue needs to be generated to cover all expenses, leading to an accounting profit break-even point.