If a manufacturer's cost of direct material increases,how will this affect breakeven point?
A)no effect
B)decrease
C)increase
D)unable to determine from the information given

Question

Quizplus · Accepted Answer

If the cost of direct material increases, the total cost of production will increase. This means that the breakeven point will increase, as the company will need to sell more units to cover the higher cost of production. Therefore, an increase in direct material cost will increase the breakeven point.

If a Manufacturer's Cost of Direct Material Increases,how Will This