Which of the following will increase a company's break-even point? Increasing variable cost per unit. Decreasing...
Which of the following will increase a company's break-even point?
Increasing variable cost per unit.
Decreasing variable cost per unit.
Reducing total fixed costs.
Increasing selling price per unit.
Increasing contribution margin per unit.
Homework Answers
| Increasing variable cost per unit will increase a company's break-even point. |
| Break-even point is calculated as Fixed costs divided by Unit Contribution margin |
| Unit Contribution margin = Selling price per unit - Variable cost per unit |
| Increasing variable cost per unit will decrease contribution margin per unit thereby increasing break-even point units. |
| Option A is correct |
Add Answer to:
Which of the following will increase a company's break-even
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