Which of the following will increase the EBIT break-even for sales?

Question

Quizplus · Accepted Answer

EBIT (earnings before interest and taxes) break-even is the point at which a company's revenues cover all of its expenses but does not generate a profit. Therefore, any factor that decreases revenue or increases expenses will increase the EBIT break-even point. Choice C, a decrease in the sales price, will decrease revenue and thus increase the EBIT break-even point. Choices A, B, and D would all decrease expenses, which would lower the EBIT break-even point.

Which of the Following Will Increase the EBIT Break-Even for Sales