Reducing the value of VC in a break-even analysis means that the business needs to sell fewer units to turn a profit.

Question

Quizplus · Accepted Answer

VC (variable cost) is the cost of producing each unit of a product. If the value of VC is reduced, it means that the cost per unit is lower, which leads to a lower break-even point. This means that the business needs to sell fewer units to cover its expenses and start making a profit.

Reducing the Value of VC in a Break-Even Analysis Means