If a firm's sale price per unit decreases, the firm's operating break-even point will
A) remain unchanged.
B) change in an undetermined direction.
C) decrease.
D) increase.

Question

Quizplus · Accepted Answer

If a firm's sale price per unit decreases, the contribution margin per unit will decrease, which means the firm will need to sell more units to cover its fixed costs. Therefore, the operating break-even point will increase.

If a Firm's Sale Price Per Unit Decreases, the Firm's