An increase in which of the following will increase the accounting break-even quantity? Assume straight-line depreciation is used.
I.annual salary for the firm's president
II.contribution margin per unit
III.cost of equipment required by a project
IV.variable cost per unit
A)I and III only
B)I and IV only
C)II and III only
D)I, III, and IV only
E)I, II, and IV only

Question

Quizplus · Accepted Answer

The accounting break-even quantity increases with higher fixed costs (such as the annual salary for the firm's president and the cost of equipment) and higher variable costs per unit, but it decreases with a higher contribution margin per unit.

An Increase in Which of the Following Will Increase the Accounting