Asked by Heidi Canaveral on May 03, 2024
Verified
Which of the following conditions would cause the break-even point to increase?
A) total fixed costs decrease
B) unit selling price increases
C) unit variable cost decreases
D) unit variable cost increases
Break-even Point
The point at which total expenses match total income, leading to neither a loss nor a profit.
Unit Variable Cost
The cost that varies with each unit of product produced, encompassing materials and labor but not fixed costs.
- Comprehend the variables influencing the break-even points and the effects of alterations in these variables on the break-even analysis.
Verified Answer
PP
Phileene PeagchMay 09, 2024
Final Answer :
D
Explanation :
If unit variable cost increases, the break-even point will increase because it will take more revenue to cover the higher costs associated with producing and selling each unit.
Learning Objectives
- Comprehend the variables influencing the break-even points and the effects of alterations in these variables on the break-even analysis.