What is the break-even point and how is it calculated in units and dollars?

• A. BEP in units = (fixed costs + target profit) / price per unit.
• B. BEP in units = revenue / price.
• C. BEP in dollars equals fixed costs times price.
• D. BEP in units = fixed costs / (price - variable cost per unit); BEP in dollars = fixed costs / contribution margin ratio.

Answer: (D)