If calculations show that the break-even point is too high for the period,which of these is not a possible course of action?
A) Consider the impact of increasing advertising costs to generate more sales.
B) Consider changing the sales mix.
C) Consider reducing prices.
D) Confirm that the cost forecasts used are reliable.

Question

Quizplus · Accepted Answer

Reducing prices would likely increase the break-even point because it would decrease the contribution margin per unit, making it harder to cover fixed costs.

If Calculations Show That the Break-Even Point Is Too High