Marston Enterprises sells three chemicals: petrol,septine,and tridol.Petrol's unit contribution margin is higher than septine's,which is higher than tridol's.Which one of the following events is most likely to increase the company's overall break-even point?
A) The installation of new computer-controlled equipment and subsequent lay-off of assembly-line workers.
B) A decrease in tridol's selling price.
C) An increase in the overall market demand for septine.
D) A change in the relative market demand for the products, with the increase favouring petrol relative to septine and tridol.

Question

Quizplus · Accepted Answer

A decrease in tridol's selling price would lower its contribution margin, potentially increasing the overall break-even point as more units would need to be sold to cover fixed costs.

Marston Enterprises Sells Three Chemicals: Petrol,septine,and Tridol