Evaluate the following statements about Break-Even Analysis: I. The Break-Even Point (BE

• P is the level of output or sales at which total revenue exactly equals total costs (fixed costs plus variable costs), resulting in neither profit nor loss. It can be calculated as: BEP (in units) = Fixed Costs divided by (Selling Price per unit minus Variable Cost per unit). II. Contribution Margin per unit = Selling Price per unit minus Total Cost per unit. A higher contribution margin means the company can cover its fixed costs faster and reach profitability at a lower level of sales. Which of the above is/are correct?