Which of the following will lower the breakeven point?
A) a decrease in the sales price per unit
B) an increase in total fixed costs
C) an increase in the variable cost per unit
D) an increase in the sales price per unit

Question

Quizplus · Accepted Answer

An increase in the sales price per unit will lower the breakeven point because it increases the contribution margin per unit (sales price per unit - variable cost per unit), which means fewer units need to be sold to cover fixed costs.

Which of the Following Will Lower the Breakeven Point