Question

The break-even point is that at which:
The level of activity at which the business operates most economically.
The level of activity at which the business makes neither a profit nor a loss.
The fixed costs are lowest.
The variable cost per unit is minimized.​

Answer 1

Answer:

Calculation of Break-Even Analysis

The basic formula for break-even analysis is derived by dividing the total fixed costs of production by the contribution per unit (price per unit less the variable costs).