How is the break-even point calculated in units?

The break-even point is calculated by dividing total fixed costs by the contribution margin per unit, which makes this the correct method. The contribution margin represents the selling price per unit minus the variable costs per unit. This value indicates how much money is available from each unit sold to cover the fixed costs after covering variable costs.

To find the break-even point in units, it's essential to determine how many units must be sold to cover all fixed costs without making a profit or a loss. By using the contribution margin in the calculation, you can effectively assess the impact of both fixed costs and variable costs on profitability. As fixed costs remain constant regardless of production levels, dividing these stable costs by the contribution margin allows for the precise identification of the sales volume needed to break even.

The other methods provided do not accurately convey the calculation process necessary for determining the break-even point in units, thereby making them less suitable for this context.