What will be the effect on the breakeven point if advertising is increased?

Name: What will be the effect on the breakeven point if advertising is increased?
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Increasing advertising expenses will raise the total fixed costs. Since the breakeven point is calculated based on both fixed costs and variable costs per unit, an increase in fixed costs (with all else being constant) will result in a higher breakeven point. This means more units must be sold to cover the increased costs.

What Will Be the Effect on the Breakeven Point If