Which of the following statements is TRUE if both fixed expenses and the sale price per unit increase while variable costs per unit are unchanged?

Question

Quizplus · Accepted Answer

Breakeven point in units could increase,decrease,or remain the same.The breakeven point is the point at which total revenue equals total costs. If both fixed expenses and the sale price per unit increase while variable costs per unit are unchanged, the breakeven point could increase, decrease, or remain the same. This is because the increase in fixed expenses will increase the total costs, while the increase in the sale price per unit will increase the total revenue. The net effect of these changes on the breakeven point will depend on the relative magnitudes of the increases in fixed expenses and the sale price per unit.

Which of the Following Statements Is TRUE If Both Fixed