Question: If total fixed costs increase while variable costs and sales price are unchanged, what happens to the break-even point? A) The break-even point remains the

If total fixed costs increase while variable costs and sales price are unchanged, what happens to the break-even point?
A) The break-even point remains the same.
B) The break-even point decreases, and therefore more units must be sold to break-even.
C) The break-even point increases, and therefore more units must be sold to break-even.
D) The break-even point decreases, and therefore fewer units must be sold to break-even.

Step by Step Solution

3.44 Rating (151 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock

Solution The correct answer is C The breakeven point increases an... View full answer

blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!