A firm's break-even point will rise if
A) fixed costs decrease.
B) contribution margin increases.
C) sales price per unit rises.
D) variable cost per unit rises.

Question

Quizplus · Accepted Answer

The break-even point will rise if the variable cost per unit rises because it reduces the contribution margin per unit, meaning more units must be sold to cover fixed costs and reach the break-even point.

A Firm's Break-Even Point Will Rise If