Which of the following will decrease the break-even point?
Decrease in Increase in directIncrease in
$\text {\underline{ fixed cost} }$ $\text {\underline{ labor cost} }$ $\text {\underline{ selling price} }$

A)yes yes yes
B)yes no yes
C)yes no no
D)no yes no

Question

Which of the following will decrease the break-even point?
Decrease in                   Increase in                         directIncrease in
$\text {\underline{ fixed cost} }$              $\text {\underline{ labor cost} }$                    $\text {\underline{ selling price} }$

A)yes yes yes
B)yes no yes
C)yes no no
D)no yes no

Quizplus · Accepted Answer

Decreasing fixed costs or increasing the selling price will decrease the break-even point, but increasing labor cost (a variable cost) will increase it.

Which of the Following Will Decrease the Break-Even Point? Decrease fixed cost‾ \text {\underline{ fixed cost} } fixed cost​

Which of the Following Will Decrease the Break-Even Point?
Decrease $\text {\underline{ fixed cost} }$