Which of the following will increase a company's breakeven point?
A) increasing variable cost per unit
B) increasing contribution margin per unit
C) reducing its total fixed costs
D) increasing the selling price per unit

Question

Quizplus · Accepted Answer

Increasing variable cost per unit will increase the company's breakeven point, as it will require selling more units to cover the increased costs and reach the breakeven point. The other options - increasing contribution margin per unit, reducing total fixed costs, and increasing selling price per unit - would all decrease the breakeven point.

Which of the Following Will Increase a Company's Breakeven Point