Identify the formula for computing break-even-point.

The correct answer is option (1)- $BEP=\frac{\text{FC(Fixed Price)}}{\text{Selling Price- Variable Cost per Unit}}$

The formula for computing the break-even point is as follows :

$BEP=\frac{FC}{SP-VC}$

Where :

BEP = Break-even point (the level of sales at which total revenue equals total costs)

FC = Fixed Costs (the total expenses that do not change with the level of production or sales)  SP= Selling Price per unit (the price at which a product is sold)

VC= Variable Cost per Unit (the cost associated with producing each unit, which varies with the level of production or sales)