Dividing the total fixed cost by the fixed cost contribution per unit equals Blank______ in units.

Multiple choice question.

stockturn rate

break-even point

cost margin

optimal return

1 answer

The correct answer is break-even point.

Dividing the total fixed cost by the fixed cost contribution per unit gives you the number of units that need to be sold to cover all fixed costs, which is the definition of the break-even point.