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Which of the following factors would cause the break-even point to change?
Select one:
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Question & Answer: Which of the following factors would cause the break-even point to change?…..
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a. Increased sales volume.
b. Fixed costs increased due to addition of physical plant.
c. Total variable costs increased as a function of higher production.
d. Total production decreased.
Expert Answer
a. Increased sales volume.-the break-even point unchanged
b. Fixed costs increased due to addition of physical plant.-the break-even point increased
c. Total variable costs increased as a function of higher production.-the break-even point increased
d. Total production decreased.-the break-even point decreased
So the option is A. Increased sales volume.
