A firm's operating break-even point is sensitive to all of the following variables EXCEPT
A) fixed operating costs.
B) interest payments.
C) sales price per unit.
D) the variable operating cost per unit.

Question

Quizplus · Accepted Answer

The operating break-even point is determined by the interplay of fixed operating costs, sales price per unit and variable operating cost per unit. Interest payments do not affect the break-even point as they are not considered as part of the operating costs.

A Firm's Operating Break-Even Point Is Sensitive to All of the Following