If all other factors remain constant,an increase in fixed costs will increase the breakeven point.

Question

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The breakeven point is the point at which the total revenue earned by a business equals its total expenses. Fixed costs are expenses that remain constant regardless of production levels, such as rent or insurance. Therefore, an increase in fixed costs will increase the total expenses of the business, making it harder to achieve the breakeven point, which means an increase in the breakeven point.

If All Other Factors Remain Constant,an Increase in Fixed Costs