When the total fixed costs increases,the breakeven point ________.
A) increases
B) decreases
C) decreases proportionately
D) remains the same

Question

Quizplus · Accepted Answer

The breakeven point is the point at which total revenue equals total costs, including both fixed and variable costs. When fixed costs increase, the total costs increase. Therefore, the breakeven point also increases because more revenue is needed to cover the increased total costs.

When the Total Fixed Costs Increases,the Breakeven Point ________