If the selling price per unit increases, the break-even point in units will
A) decrease.
B) increase.
C) remain the same.
D) remain the same; however, contribution per unit will decrease.

Question

Quizplus · Accepted Answer

When the selling price per unit increases, the contribution per unit also increases. This means that it will require fewer units to cover the fixed costs and break-even. Therefore, the break-even point in units will decrease.

If the Selling Price Per Unit Increases, the Break-Even Point