What is the Breakeven formula when a profit is included: Group of answer choices c. Fixed Costs – Contribution Margin Variable Costs/ Profit Component None of the above Variable Costs + Profit Component/ Contribution Margin
What is the Breakeven formula when a profit is included: Group of answer choices c. Fixed Costs – Contribution Margin Variable Costs/ Profit Component None of the above Variable Costs + Profit Component/ Contribution Margin
Chapter3: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 1MC: The amount of a units sales price that helps to cover fixed expenses is its ____________________. A....
Related questions
Question
What is the Breakeven formula when a profit is included:
Group of answer choices
c. Fixed Costs – Contribution Margin
Variable Costs/ Profit Component
None of the above
Variable Costs + Profit Component/ Contribution Margin
Expert Solution
Step 1
Break-even point is the point at which there is no loss or no profit. It is because the sales revenue and total cost will be equal. The usual break even point formula is
or
Contribution margin is the difference between the selling price per unit and variable cost per unit.
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College
EBK CONTEMPORARY FINANCIAL MANAGEMENT
Finance
ISBN:
9781337514835
Author:
MOYER
Publisher:
CENGAGE LEARNING - CONSIGNMENT
Survey of Accounting (Accounting I)
Accounting
ISBN:
9781305961883
Author:
Carl Warren
Publisher:
Cengage Learning
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College
EBK CONTEMPORARY FINANCIAL MANAGEMENT
Finance
ISBN:
9781337514835
Author:
MOYER
Publisher:
CENGAGE LEARNING - CONSIGNMENT
Survey of Accounting (Accounting I)
Accounting
ISBN:
9781305961883
Author:
Carl Warren
Publisher:
Cengage Learning
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning
Financial And Managerial Accounting
Accounting
ISBN:
9781337902663
Author:
WARREN, Carl S.
Publisher:
Cengage Learning,