You are president of a manufacturer of small electric appliances. You want to reduce your break-even quantity. All things being equal, you can do this by

Question

Quizplus · Accepted Answer

Reducing unit variable cost will lower the amount of revenue needed to cover all costs, thereby reducing the break-even quantity. This can be achieved through finding less expensive materials or suppliers, improving production processes, or other cost-cutting measures. Increasing quantity sold or fixed cost would both increase the break-even quantity, while reducing marginal revenue or increasing total cost would not directly impact it.

You Are President of a Manufacturer of Small Electric Appliances