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

Question

Quizplus · Accepted Answer

If variable costs per unit increase, it means that the firm has to sell more units to cover its fixed costs and reach its break-even point. Therefore, the operating break-even point will increase.

If a Firm's Variable Costs Per Unit Increase, the Firm's