A company that desires to lower its break-even point should strive to:
A) decrease selling prices.
B) reduce variable costs.
C) increase fixed costs.
D) sell more units.
E) achieve more than one of the answers listed.

Question

Quizplus · Accepted Answer

Reducing variable costs lowers the break-even point by decreasing the total costs needed to cover fixed expenses, allowing profitability to be reached with fewer sales.

A Company That Desires to Lower Its Break-Even Point Should