If fixed expenses were the same and contribution margin per unit was cut in half, then the break- even point would:
A) be the same
B) be undeterminable
C) double
D) be cut in half

Question

Quizplus · Accepted Answer

The break-even point is calculated as fixed expenses divided by the contribution margin per unit. If the contribution margin per unit is cut in half, the break-even point will double, assuming fixed expenses remain the same.

If Fixed Expenses Were the Same and Contribution Margin Per