If fixed expenses increase by $10,000 per year, then the sales needed to break even will generally increase by more than $10,000.

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Fixed expenses are one of the components used to calculate the break-even point, along with variable expenses and unit selling price. When fixed expenses increase, the break-even point will generally increase as well, but by more than the amount of the increase in fixed expenses. This is because the increase in fixed expenses must be covered by additional sales revenue, but each additional sale also incurs variable expenses that reduce the contribution margin. Therefore, more sales are required to cover the fixed expense increase and make up for the decreased contribution margin.

If Fixed Expenses Increase by $10,000 Per Year, Then the Sales