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

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Quizplus · Accepted Answer

The break-even point is the sales level at which a business neither earns a profit nor incurs a loss. An increase in break-even point means that the business needs to sell more units to earn a profit. This could happen due to an increase in fixed costs or a decrease in selling price per unit. In either case, the contribution margin per unit (which is the selling price per unit minus variable cost per unit) must have decreased. This is because a lower contribution margin per unit means that the business needs to sell more units to cover its fixed costs and break even. Therefore, the correct choice is (C) decreased.

Assuming All Other Things Are the Same, If There Was