When all other factors remain constant, which of the following is true?

Question

Quizplus · Accepted Answer

When all other factors remain constant, an increase in variable costs leads to an increase in units needed to break even. This is because higher variable costs mean that each unit produced incurs more costs, which increases the overall break-even point. The other options are incorrect as an increase in fixed costs leads to an increase in units needed to break even (A), an increase in sales price leads to a decrease in units needed to break even (C), and a decrease in the variable cost rate leads to a decrease in units needed to break even (D).

When All Other Factors Remain Constant, Which of the Following