What action will decrease a company's break-even point?
A)reducing total fixed costs
B)decreasing contribution margin per unit
C)increasing variable cost per unit
D)decreasing the selling price per unit

Question

Quizplus · Accepted Answer

The break-even point is the point at which a company's revenue equals its total costs. By reducing total fixed costs, the company's total costs will decrease, and therefore the break-even point will decrease as well. This means the company will need to sell fewer units or generate less revenue to cover its costs and start making a profit.

What Action Will Decrease a Company's Break-Even Point