If a product's variable cost per unit increases while the selling price and fixed costs remain constant, what will happen to the breakeven point?

Question

Quizplus · Accepted Answer

An increase in variable cost per unit will increase the total cost per unit, which will decrease the contribution margin per unit. As the fixed costs remain constant, the breakeven point will increase as more units need to be sold to cover the higher costs.

If a Product's Variable Cost Per Unit Increases While the Selling