Assuming all other things are the same, if there was a decrease in the break-even point, selling price per unit must have:

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Quizplus · Accepted Answer

The break-even point is the point at which a company's revenues equal its expenses. This means that if the break-even point is decreased, either expenses should be reduced or revenues should be increased. However, assuming all other things are the same, the only way to decrease the break-even point is to increase the contribution margin. Contribution margin is the difference between selling price per unit and variable costs per unit. Therefore, if the break-even point is decreased, it means that the contribution margin has increased, which can only happen if the selling price per unit has increased. Therefore, the answer is B) increased.

Assuming All Other Things Are the Same, If There Was