Which of the following will decrease the break-even quantity?
A)Falling fixed costs
B)Increasing marginal costs
C)An increase in the price
D)Both A&C

Question

​Which of the following will decrease the break-even quantity?
A)​Falling fixed costs
B)Increasing marginal costs
C)An increase in the price
D)​Both A&C

Quizplus · Accepted Answer

A) Falling fixed costs will decrease the total cost, which will shift the break-even point to the left (lower quantity).
C) An increase in price will increase the revenue per unit, which will decrease the number of units required to break even (shift the break-even point to the left).

​Which of the Following Will Decrease the Break-Even Quantity

Which of the Following Will Decrease the Break-Even Quantity