If all other factors are constant,any increase in fixed costs will increase the breakeven point.

Name: If all other factors are constant,any increase in fixed costs will increase the breakeven point.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

This is because fixed costs are a component of the breakeven point formula. As fixed costs increase, the total costs increase, which means that the business needs to sell more units to cover their costs and reach the breakeven point.

If All Other Factors Are Constant,any Increase in Fixed Costs