Leidysmarian4184 Leidysmarian4184
  • 19-08-2020
  • Business
contestada

The break-even point in units can be obtained by dividing total fixed expenses by the contribution margin ratio. A) True B) False

Respuesta :

ayokenny2001
ayokenny2001 ayokenny2001
  • 19-08-2020

Answer:

B. False

Explanation:

Break even point is the point at which total revenue equals total cost. At break even point, a company is neither making a profit nor a loss. However, the importance of break even analysis is that it helps a company to know the point at which the company's new product or service will be profitable.

The formula for break even point = Fixed expenses / Contribution margin

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