In a break-even problem what would be expected to happen to the break-even quantity if the variable cost is increased (assume fixed and variable costs remain constant)?
A) Increase
B) Decrease
C) Neither increase nor decrease
D) Impossible to know how break-even quantity would change

Question

Quizplus · Accepted Answer

If the variable cost increases, the total cost per unit increases, requiring more units to be sold to cover the fixed costs, thus increasing the break-even quantity.

In a Break-Even Problem What Would Be Expected to Happen