If a firm's variable costs per unit increase,the firm's ________.
A) financial breakeven point will decrease
B) operating breakeven point will increase
C) sale price per unit will decrease
D) fixed costs per unit will increase

Question

Quizplus · Accepted Answer

The operating breakeven point represents the level of sales at which the firm covers all of its variable costs and some portion of its fixed costs. If the variable costs per unit increase, the firm will need to sell more units to cover its fixed costs, causing the operating breakeven point to increase. The financial breakeven point is the level of sales at which the firm covers all of its costs, including fixed costs and a desired level of profit. A change in variable costs per unit would not directly impact the financial breakeven point. The sale price per unit and fixed costs per unit would also not be impacted by a change in variable costs per unit.

If a Firm's Variable Costs Per Unit Increase,the Firm's ________