If the variable cost per unit increases,what is the effect on the break-even point? (Assume no other changes.)
A) The break-even point increases.
B) The break-even point decreases.
C) The break-even point remains the same.
D) The break-even point is zero.

Question

Quizplus · Accepted Answer

If the variable cost per unit increases, the cost to produce each unit also increases. This means that the break-even point, where the revenue from sales equals the total costs, will be reached at a higher level of sales. Therefore, the break-even point increases.

If the Variable Cost Per Unit Increases,what Is the Effect