The break-even point is estimated by

A) multiplying revenue per unit times the quantity sold.
B) dividing fixed contribution per unit by variable costs.
C) multiplying fixed costs by contribution per unit.
D) dividing fixed costs by contribution per unit.
E) dividing variable costs by fixed costs.

Break-Even Point

The point at which total costs and total revenue are equal, meaning that there is no net loss or gain, and one has "broken even."

Fixed Costs

Fixed costs that are unaffected by production or sales volume, like rent, employee salaries, and insurance fees.

Contribution Per Unit

The amount of money each unit sold contributes towards covering fixed costs and generating profit.