If fixed expenses doubled, the break-even point in units would double and the break-even point in dollars would be cut in half.

Question

Quizplus · Accepted Answer

If fixed expenses doubled, the break-even point in units would increase, but not necessarily double, and the break-even point in dollars would also increase, not be cut in half. The break-even point depends on both fixed costs and contribution margin per unit.

If Fixed Expenses Doubled, the Break-Even Point in Units Would