A company wants to invest more money in its advertising budget. What is added to the additional advertising expense to calculate the new break-even point?

Question

Quizplus · Accepted Answer

The new break-even point is calculated by adding the additional advertising expense to the existing fixed costs, as fixed costs are those that do not change with the level of production or sales, and advertising is considered a fixed cost.

A Company Wants to Invest More Money in Its Advertising