A. fixed output
B. variable output
C. breakeven number of units
D. total number of units
✅ The correct answer is option C.
To calculate breakeven number of units, fixed cost is divided into contribution margin per unit. A break-even analysis is a financial tool which helps you to determine at what stage your company, or a new service or a product, will be profitable. In other words, it’s a financial calculation for determining the number of products or services a company should sell to cover its costs (particularly fixed costs). Break-even is a situation where you are neither making money nor losing money, but all your costs have been covered.
To calculate breakeven number of units, fixed cost is divided into contribution margin per unit. A break-even analysis is a financial tool which helps you to determine at what stage your company, or a new service or a product, will be profitable. In other words, it’s a financial calculation for determining the number of products or services a company should sell to cover its costs (particularly fixed costs). Break-even is a situation where you are neither making money nor losing money, but all your costs have been covered.