The break-even point in units is calculated as total fixed costs divided by the contribution margin per
Question:
The break-even point in units is calculated as total fixed costs divided by the contribution margin per unit. Therefore, which of the following statements is true?
Hint: Work on a simple example to see how changes in selling price and variable costs impact break-even.
The Break-even point in units will increase when unit variable costs decrease and the sales price per unit increases. | ||
The Break-even point in units will increase when unit variable costs increase and sales price per unit remains unchanged. | ||
The Break-even point in units will increase when unit variable costs decrease and sales price per unit remains unchanged. | ||
The Break-even point in units will increase when unit variable costs remain unchanged and the sales price per unit increases. |
Cost Accounting A Managerial Emphasis
ISBN: 978-0133392883
6th Canadian edition
Authors: Horngren, Srikant Datar, George Foster, Madhav Rajan, Christ