If fixed costs increase, but variable cost and price remain the same, the break-even point
A) decreases.
B) increases.
C) remains the same.
D) may increase or decrease depending on sales.

Question

Quizplus · Accepted Answer

The break-even point increases because with higher fixed costs, more units must be sold to cover these increased costs before the company starts making a profit, assuming variable cost and price per unit remain constant.

If Fixed Costs Increase, but Variable Cost and Price Remain