If a firm's variable cost per unit increases, the firm's operating breakeven point will
A) decrease
B) increase
C) remain unchanged
D) change in an undetermined direction

Question

Quizplus · Accepted Answer

With an increase in variable cost per unit, the overall cost of producing each unit increases, which means that the firm will need to sell more units to cover its fixed costs and break even. Thus, the operating breakeven point will increase as a result.

If a Firm's Variable Cost Per Unit Increases, the Firm's