Which of the following would take place if a company experienced an increase in fixed costs?

Question

Quizplus · Accepted Answer

An increase in fixed costs means that the company's total costs have increased, which would cause the break-even point to increase. The break-even point is the level of sales at which total costs equal total revenues, so an increase in fixed costs would mean that the company would need to sell more units to cover its costs and reach the break-even point. Net income and contribution margin are not directly impacted by an increase in fixed costs.

Which of the Following Would Take Place If a Company