Which of the following conditions would cause the break-even point to increase?
A) Total fixed costs decrease
B) Unit selling price increases
C) Unit variable cost decreases
D) Unit variable cost increases

Question

Quizplus · Accepted Answer

An increase in unit variable cost means that more sales are required to cover the same amount of fixed costs, which raises the break-even point. Therefore, an increase in unit variable cost would cause the break-even point to increase.

Which of the Following Conditions Would Cause the Break-Even Point