If the price decreases, but fixed and variable costs do not change, the break-even point
A) decreases
B) increases
C) remains the same
D) may increase or decrease, depending on sales

Name: If the price decreases, but fixed and variable costs do not change, the break-even point A) decreases B) increases C) remains the same D) may increase or decrease, depending on sales
Brand: Quizplus
Rating: 5.0 (31 reviews)

Question

Quizplus · Accepted Answer

When the price decreases, more units need to be sold to cover the same fixed and variable costs, thus increasing the break-even point.

If the Price Decreases, but Fixed and Variable Costs Do