A company's break-even point will not be changed by:
A) a change in total fixed costs.
B) a change in the number of units produced and sold.
C) a change in the variable cost ratio.
D) a change in the contribution margin ratio.

Question

Quizplus · Accepted Answer

The break-even point is determined by fixed costs, variable costs, and sales price per unit. A change in the number of units produced and sold does not affect the break-even point, as it is a point of no profit or loss, not dependent on the actual number of units sold.

A Company's Break-Even Point Will Not Be Changed By