Which One of the Following Statements About Break-Even Analysis, as We

Multiple Choice

Which one of the following statements about break-even analysis, as we applied it to evaluating products or services, is best?

A) Break-even analysis assumes that the cost function is linear and consists of fixed costs plus variable costs times volume.
B) The break-even quantity will increase when the change in variable cost per unit is identical to the change in unit price.
C) Increasing the price, while keeping the variable cost per unit constant, increases the break-even quantity.
D) Increasing the fixed costs tends to decrease the break-even quantity.