Which of the following conditions would cause the break-even point to increase?
A) total fixed costs decrease
B) unit selling price increases
C) unit variable cost decreases
D) unit variable cost increases

Question

Quizplus · Accepted Answer

An increase in unit variable cost would cause the break-even point to increase because it means that each unit sold incurs a higher cost, requiring more units to be sold in order to cover the fixed costs and reach the break-even point.

Which of the Following Conditions Would Cause the Break-Even Point