Which of the following statements is CORRECT if the variable cost per unit increases while the sale price per unit and total fixed costs remain constant?

Question

Quizplus · Accepted Answer

If the variable cost per unit increases, it means that the cost of producing each unit increases, which in turn increases the total cost of producing a certain quantity of units. This means that the breakeven point, which is the quantity of units that need to be sold to cover all costs, increases as well. Therefore, the correct statement is that the breakeven point increases.

Which of the Following Statements Is CORRECT If the Variable