Asked by Madison Owens on Sep 23, 2024
Which of the following will increase the price needed to break even?
A) A decrease in overall fixed costs
B) A decrease in the marginal costs
C) An increase in fixed costs
D) An increase in the level of production
Break Even
Break even refers to the point at which total revenues equal total costs, meaning that a business or project is neither losing nor making money.
Fixed Costs
Fixed costs are business expenses that remain constant regardless of the level of production or business activity.
Marginal Costs
The additional cost incurred from producing one more unit of a good or service.
- Evaluate the significance of the contribution margin for pricing and profit optimization strategies.
Learning Objectives
- Evaluate the significance of the contribution margin for pricing and profit optimization strategies.