In general, an increase in price increases the break-even point if all costs are held constant.

Name: In general, an increase in price increases the break-even point if all costs are held constant.
Brand: Quizplus
Rating: 4.9 (35 reviews)

Question

Quizplus · Accepted Answer

The break-even point is determined by fixed costs divided by the price minus variable costs per unit. If the price increases while all costs are held constant, the contribution margin per unit increases, thus lowering the break-even point.

In General, an Increase in Price Increases the Break-Even Point