A firm can reduce its breakeven volume by:
A) increasing contribution margin.
B) decreasing contribution margin.
C) decreasing variable costs.
D) lowering selling price.

Question

Quizplus · Accepted Answer

Increasing contribution margin reduces the breakeven volume because it increases the amount of profit earned per unit sold, which means that the firm needs to sell fewer units to cover its fixed costs.

A Firm Can Reduce Its Breakeven Volume By