Which of the following would cause the break-even point to change?
A)Sales volume increased.
B)Fixed costs increased due to addition to physical plant.
C)Total variable costs increased as a function of higher production.
D)Total production decreased.

Question

Quizplus · Accepted Answer

An increase in fixed costs, such as the addition to a physical plant, would change the break-even point as it affects the total fixed costs that need to be covered by sales.

Which of the Following Would Cause the Break-Even Point to Change