Asked by Heidi Canaveral on May 03, 2024

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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.
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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.