Which of the following will increase a company's break-even point?

Question

Quizplus · Accepted Answer

Increasing the variable cost per unit will increase the break-even point because more revenue will need to be generated to cover the increased costs. A higher break-even point means the company needs to sell more units or generate more revenue before it can make a profit. Increasing the contribution margin per unit or selling price per unit would decrease the break-even point, while reducing total fixed costs would have a similar effect.

Which of the Following Will Increase a Company's Break-Even Point