Answer :
The formula is used to calculate the break-even point in units, which is the point at which total revenues equal total costs. The correct answer to the given problem is C. 9,100/(45-18).
The question is asking for the break-even point in units, given the selling price per unit of €45, the total fixed expenses of €9,100, and the variable expenses per unit of €18. To calculate the break-even point in units, you need to divide the total fixed expenses by the difference between the selling price per unit and the variable expenses per unit. In this case, the correct calculation would be C. 9,100/(45-18).
Here's how you can work it out:
1. Start with the total fixed expenses, which is €9,100.
2. Subtract the variable expenses per unit (€18) from the selling price per unit (€45). This will give you the contribution margin per unit, which is €27 (45-18).
3. Now, divide the total fixed expenses (€9,100) by the contribution margin per unit (€27). The result will give you the number of units that need to be sold to cover your costs, also known as the break-even point.
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