In a break-even problem, what would be expected to happen to the break-even quantity if sales price is increased (assume fixed and variable costs remain constant)?
A) Increase
B) Decrease
C) Neither increase nor decrease
D) Impossible to know how break-even quantity would change

Question

Quizplus · Accepted Answer

If the sales price is increased while fixed and variable costs remain constant, the contribution margin per unit increases, leading to a decrease in the break-even quantity.

In a Break-Even Problem, What Would Be Expected to Happen