What happens to break-even point when the sales price per unit decreases?
A) Break-even point increases.
B) Break-even point decreases.
C) Break-even point stays the same.
D) None of these answers is correct.

Question

Quizplus · Accepted Answer

When the sales price per unit decreases, the contribution margin per unit also decreases. This means that more units must be sold to cover the fixed costs and reach the break-even point. Therefore, the break-even point increases.

What Happens to Break-Even Point When the Sales Price Per