Machine-translated by Google. Questions are authored in English.
Top

Discussion

The break-even sales value is the fixed cost divided by the

  • A.contribution margin ratio
  • B.contribution per unit
  • C.selling price per unit
  • D.variable cost ratio

Answer: A

Correct answer: contribution margin ratio

Dividing by the ratio converts the fixed cost into the sales value needed to cover it:

\[ S_{BE} = \frac{F}{(p - v)/p} \]

which is the same answer as \( Q_{BE} \times p \). The ratio form is the more useful of the two in practice, since a firm with many products can compute an overall margin ratio from its accounts without counting units at all.

No comment is present. Be the first to comment.
Loading…

Post your comment

Please log in or register to post a comment.