If direct materials cost per unit increases, the break-even point will decrease.

Name: If direct materials cost per unit increases, the break-even point will decrease.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

If the direct materials cost per unit increases, the cost per unit will also increase, thus increasing the break-even point. This is because the higher cost per unit means more sales will need to be made in order to cover the increased costs and reach the break-even point.

If Direct Materials Cost Per Unit Increases, the Break-Even Point