The breakeven sales volume of the Fraser Co. is $800,000. If the variable cost per unit increases next year, then the new breakeven point will be:

Question

Quizplus · Accepted Answer

If the variable cost per unit increases, it means that the company will have to sell more units to cover its fixed costs and reach the breakeven point. Therefore, the new breakeven point will be higher than the previous one.

The Breakeven Sales Volume of the Fraser Co