Answered

f total fixed costs increase while variable costs and sales price are unchanged, what happens to the break-even point? a. the break-even point increases, and therefore more units must be sold to break even. b. the break-even point decreases, and therefore fewer units must be sold to break even. c. the break-even point remains the same. d. the break-even point decreases and therefore more units must be sold to break even.



Answer :

Less units must be sold in order to break even when the break-even point drops.

What does "break-even point" mean?

The break-even threshold is reached when overall costs and total revenues are equal, leaving your small firm with no net benefit or loss. In other words, you've achieved the point in production where the revenue from a product equals the cost of manufacture.

The point at which a business breaks even is when its sales exactly match its costs. Breakeven Point in Units = Fixed Costs (Price - Variable Costs). Sales volume, business expenses, and product pricing are all interconnected.

The BEP informs a business owner of the revenue required to pay all costs, including fixed costs.

Learn more about break-even point

https://brainly.com/question/15281855

#SPJ4

Other Questions