Break-even point in units is calculated as:

A Revenue / variable cost

B Fixed costs / (selling price per unit − variable cost per unit)

C Total revenue / total costs

D Profit / sales

✓ Correct Answer: Option B

BEP = Fixed Costs / Contribution Margin per unit. At break-even, total revenue equals total costs (zero profit).

💡 Why is B) the correct answer?

The correct answer to the question "Break-even point in units is calculated as:" is Option B: Fixed costs / (selling price per unit − variable cost per unit).

The other options — A) Revenue / variable cost, C) Total revenue / total costs, D) Profit / sales — are incorrect for this CPA Exam Prep question. As explained above: BEP = Fixed Costs / Contribution Margin per unit. At break-even, total revenue equals total costs (zero profit).

📚 About This CPA Exam Prep Practice Question

This 2-level CPA Exam Prep question from the Business Environment (BEC) topic is part of BrainForge Quiz's free exam preparation library. Each question includes the correct answer and a detailed explanation to help you understand the underlying concept, not just memorize the answer.

How to use this page: Read the question above, consider all four options (A through D), then check the highlighted correct answer and explanation. For active timed practice, start a free CPA Exam Prep practice test or use flashcards for spaced repetition review.

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Break-even point in units is calculated as:

✓ Correct Answer: Option B

📚 About This CPA Exam Prep Practice Question

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