Which One of the Following Statements About Break-Even Analysis for Evaluating

Multiple Choice

Which one of the following statements about break-even analysis for evaluating products or services is TRUE?

A) The break-even quantity will tend to increase as the variable cost per unit of production decreases.
B) As sales increase beyond the break-even quantity,total before-tax profits tend to decrease.
C) A restaurant's opening of downsized facilities with only drive-through service is an example of lowering fixed costs and the break-even quantity.
D) Increasing the unit selling price has the effect of increasing the break-even quantity.