Solved

If Total Fixed Costs Increase While Variable Costs and Sales

Question 10

Multiple Choice

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 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.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions