A company that desires to lower its break-even point should strive to:
A) decrease selling prices.
B) reduce variable costs.
C) increase fixed costs.
D) sell more units.
E) achieve more than one of the other answers listed.

Question

Quizplus · Accepted Answer

To lower the break-even point, a company needs to reduce its costs. Reducing variable costs would be the best way to achieve that goal as fixed costs cannot be easily reduced without negatively impacting the company's operations. By reducing variable costs, the company can decrease the amount of revenue needed to cover its costs and reach its break-even point.

A Company That Desires to Lower Its Break-Even Point Should