Fixed cost, and contribution margin percentage for bundle are divided to calculate

A. breakeven costs

B. breakeven revenues

C. breakeven units

D. breakeven sales

Answer: Option B

Solution(By Examveda Team)

Fixed cost, and contribution margin percentage for bundle are divided to calculate breakeven revenues. Break-even analysis entails the calculation and examination of the margin of safety for an entity based on the revenues collected and associated costs. Analyzing different price levels relating to various levels of demand a business uses break-even analysis to determine what level of sales are necessary to cover the company's total fixed costs.