The break-even point would not be affected by changes to:
A) total fixed costs.
B) sales price per unit.
C) variable cost per unit.
D) number of units sold.

Question

Quizplus · Accepted Answer

The break-even point is the point where total revenue equals total costs, meaning that it is the point at which a company is neither earning a profit nor incurring a loss. The break-even point is calculated as the total fixed costs divided by the difference between the sales price per unit and the variable cost per unit. As a result, changes in total fixed costs, sales price per unit, and variable cost per unit would affect the break-even point. However, the number of units sold would not affect the break-even point because it is already taken into account in the break-even calculation.

The Break-Even Point Would Not Be Affected by Changes To