The price of product is subtracted from variable cost than divided by fixed cost for calculation is __________?
Correct answer: B. break-even volume
- A. unit cost
- B. break-even volume
- C. target return price
- D. target return cost
Explanation
Break-even volume is calculated as fixed cost divided by the contribution per unit, where contribution equals selling price minus variable cost. Thus, the intended formula is fixed cost ÷ (price − variable cost).
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