All other things held constant,how will an increase in selling price affect the break-even point measured in units?
A)The break-even point will decrease.
B)The break-even point will increase.
C)The break-even point will remain constant.
D)The effect on the break-even point can't be predicted with certainty.

Question

Quizplus · Accepted Answer

The break-even point in units decreases when the selling price per unit increases, assuming costs remain constant. This is because each unit sold contributes more towards covering fixed costs, thus requiring fewer units to be sold to break even.

All Other Things Held Constant,how Will an Increase in Selling