All other things the same, an increase in variable expense per unit will reduce the break-even point.

Name: All other things the same, an increase in variable expense per unit will reduce the break-even point.
Brand: Quizplus
Rating: 5.0 (32 reviews)

Question

Quizplus · Accepted Answer

An increase in variable expense per unit will increase the break-even point. This is because a higher variable expense per unit means that the company needs to sell more units to cover its fixed costs and make a profit. Therefore, the break-even point will be higher.

All Other Things the Same, an Increase in Variable Expense