In breakeven analysis adjusted for a profit factor,increasing the unit sales price will decrease the number of units needed to meet the targeted profit.

Question

Quizplus · Accepted Answer

Adjusting for a profit factor means taking into account the desired profit margin in addition to the fixed and variable costs. Increasing the unit sales price will increase the profit per unit sold, which means that fewer units will be needed to reach the targeted profit. In other words, the breakeven point will be reached with fewer units sold at a higher price point.

In Breakeven Analysis Adjusted for a Profit Factor,increasing the Unit