Which of the following formula is correct for break even point?
Answer & explanation
Correct answer: option 4
At the breakeven level
Total revenue = Total expenses
(Qty x Unit Price) = (Qty x Unit Cost) + Fixed Exp
Qty x (Unit Price – Unit Cost) = Fixed Exp
Qty x Gross Margin (or Profit) per Unit = Fixed Exp
Total revenue = Total expenses
(Qty x Unit Price) = (Qty x Unit Cost) + Fixed Exp
Qty x (Unit Price – Unit Cost) = Fixed Exp
Qty x Gross Margin (or Profit) per Unit = Fixed Exp