Holding all other factors constant, if fixed expenses increase by 25%, the break-even point will always double.

Question

Quizplus · Accepted Answer

The break-even point depends not only on fixed expenses but also on variable costs and selling price. If those other factors stay constant, then a 25% increase in fixed expenses would result in an increase in the break-even point, but it would not necessarily double. The exact impact on the break-even point would depend on the specific numbers involved.

Holding All Other Factors Constant, If Fixed Expenses Increase by 25