A company that desires to lower its break-even point should strive to:

Question

Quizplus · Accepted Answer

Lowering variable costs will decrease the amount of revenue needed to cover all costs and reach the break-even point, making it easier for the company to achieve profitability. Decreasing selling prices may increase sales but can also decrease profit margins. Increasing fixed costs without increasing sales or revenue could harm the company's overall financial position. Selling more units can also lower the break-even point, but may not be feasible in all situations.

A Company That Desires to Lower Its Break-Even Point Should