All of the following will make the break-even point increase,other things equal,except:
A) fixed costs increase.
B) the sales price per unit is decreased due to competition.
C) variable costs increase due to higher direct labor cost.
D) the number of units sold for the year decreased.

Question

Quizplus · Accepted Answer

The break-even point is the level of sales at which revenue equals total costs. If the number of units sold for the year decreases, the break-even point will also decrease because there are fewer units to cover the fixed costs. Therefore, D is the only choice that will not make the break-even point increase. A, B, and C will increase the break-even point because they increase the total costs without increasing revenue.

All of the Following Will Make the Break-Even Point Increase,other