Assuming all other things are the same, if there was an increase in the break-even point variable cost per unit must have:

Question

Quizplus · Accepted Answer

The break-even point is the level of sales at which total revenue equals total cost, including fixed and variable costs. If the break-even point has increased, it means that the company needs to sell more units to cover its costs. This can only happen if the variable cost per unit has increased, as the fixed cost per unit remains the same. Therefore, the correct answer is B, variable cost per unit has increased.

Assuming All Other Things Are the Same, If There Was