Which of the following statements is TRUE if both fixed expenses and the sale price per unit increase while variable costs per unit are unchanged?

Question

Quizplus · Accepted Answer

The break-even point in units could increase, decrease, or remain the same depending on the magnitude of the increase in fixed expenses and the sale price per unit. If the sale price per unit increases more significantly relative to the increase in fixed expenses, the break-even point could decrease. Conversely, if fixed expenses increase substantially while the sale price per unit increases marginally, the break-even point could increase. If the increases offset each other perfectly, the break-even point could remain unchanged.

Which of the Following Statements Is TRUE If Both Fixed