Which of the following would not cause the break-even point to change?
A)Sales price increases.
B)Fixed cost decreases.
C)Sales volume decreases.
D)Variable costs per unit increases.
E)Product mix shifts towards the cheaper products.

Question

Quizplus · Accepted Answer

Sales volume decreasing would not cause the break-even point to change because it is already factored into the original calculation of the break-even point. The remaining options would cause a change in the break-even point. A higher sales price, lower fixed costs, lower variable costs per unit, or a shift towards cheaper products would all shift the break-even point.

Which of the Following Would Not Cause the Break-Even Point