15 all other things the same, a decrease in variable expense per unit will reduce the...
15 all other things the same, a decrease in variable
expense per unit will reduce the break-even point.
true, false
Homework Answers
Break Even Point ( in Units )
= Fixed Costs / Contribution Margin per unit
Contribution margin per unit
= Selling Price per unit – Variable costs per unit
As we can find, if variable cost per unit reduces, the contribution margin per unit will increase which will result in fall in break even point assuming fixed cost and selling price remains the same
So, as per above discussion, the statement in the question is True
Add Answer to:
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