If fixed expenses were the same and contribution margin per unit was cut in half, then the break?even point would _____.
A)be cut in half
B)double
C)be the same
D)be undeterminable

Question

Quizplus · Accepted Answer

If contribution margin per unit is cut in half, it means that the profit per unit is reduced, hence more units need to be sold to cover fixed expenses. Therefore, the break-even point would double.

If Fixed Expenses Were the Same and Contribution Margin Per