All else the same, if you decrease ﬁxed costs, accounting break-even will also decline.

Name: All else the same, if you decrease ﬁxed costs, accounting break-even will also decline.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Accounting break-even is calculated by dividing fixed costs by the contribution margin per unit. Therefore, if fixed costs decrease while contribution margin per unit remains constant, the accounting break-even point will also decrease.

All Else the Same, If You Decrease ﬁXed Costs, Accounting