Once a company exceeds its breakeven level, operating income can be calculated by multiplying: a. The sales

Question:

Once a company exceeds its breakeven level, operating income can be calculated by multiplying:

a. The sales price by unit sales in excess of breakeven units.

b. Unit sales by the difference between the sales price and fixed cost per unit.

c. The contribution margin ratio by the difference between unit sales and breakeven sales.

d. The contribution margin per unit by the difference between unit sales and breakeven sales.

Contribution Margin
Contribution margin is an important element of cost volume profit analysis that managers carry out to assess the maximum number of units that are required to be at the breakeven point. Contribution margin is the profit before fixed cost and taxes...