Q20-16RQ

Expert-verifiedFound in: Page 1119

Book edition
6th

Author(s)
Tracie L. Miller-Nobles, Brenda L. Mattison

Pages
992 pages

ISBN
9780134486833

**Question: Of the three approaches to calculate sales required to achieve the breakeven point, which one(s) calculate the required sales in units and which one(s) calculate the required sales in dollars?**

**Answer**

** **

**Contribution margin approach****Contribution margin ratio approach**

** **

The contribution margin approach helps in calculating required sales in units. It is calculated by dividing the total fixed cost by contribution margin per unit.

The contribution margin ratio approach helps in calculating required sales in units. It is calculated by dividing the total fixed cost by contribution margin ratio.

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