All else equal, which of the following is/are true about break-even point?
I. An increase in the sale price per unit increases the break-even quantity.
II. An increase in the variable cost per unit increases the break-even quantity.
III. An increase in the fixed costs increases the break-even quantity.
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A. B. C. D. E. F. G.D
The break-even quantity is the number of units that must be sold to just cover the fixed and variable costs. An increase in revenues per unit will decrease the break-even quantity while an increase in costs per unit will increase the break-even quantity.