The break-even point is found by dividing total fixed costs by Blank______.

Question

Multiple choice question.

fixed variable costs

final variable costs

the variable cost contribution per unit

the fixed cost contribution per unit

Answer 1

The break-even point is found by dividing total fixed costs by the variable cost contribution per unit.

(Note: The correct term in this context is actually "the contribution margin per unit," which is the selling price per unit minus the variable cost per unit. So the most accurate completion would be "the contribution margin per unit," but it’s not one of the options provided.)