Break-even point (units) equals:
AFixed cost / Contribution per unit
BVariable cost / Sales
CContribution / Fixed cost
DSales / Fixed cost
Answer & Solution
Correct answer: A. Fixed cost / Contribution per unit
1. Break-even point in units is the volume at which contribution exactly covers fixed cost.
2. Setting Contribution per unit × Volume = Fixed cost.
3. Rearranging: Volume = Fixed cost / Contribution per unit.
4. Hence the BEP in units formula is the first option.
_Source: ICAI BoS Inter Paper 3, Ch 14 "Marginal Costing", §14.5 ¶3_
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