All other things remaining the same, if the variable cost per unit increases by $10 \%$ then the breakeven volume of production will
A) go up by $10 \%$
B) go down by $10 \%$
C) cannot tell
D) can stay the same, though usually will change
E) price has to be increased by $10 \%$

Question

Quizplus · Accepted Answer

The breakeven volume of production is determined by both variable costs and fixed costs in relation to the selling price per unit. An increase in variable cost per unit does not directly translate to a proportional change in the breakeven volume because the impact depends on the relationship between the new variable cost, the fixed costs, and the selling price. Therefore, without information on how the selling price and fixed costs compare to the increase in variable costs, it's impossible to determine the exact effect on the breakeven volume.

All Other Things Remaining the Same, If the Variable Cost 10%10 \%10%

All Other Things Remaining the Same, If the Variable Cost $10 \%$