Which of the Following Conditions Would Cause the Break-Even Point

question 8

Multiple Choice

Which of the following conditions would cause the break-even point to decrease?

• A) Increase in total fixed costs
• B) Decrease in unit selling price
• C) Decrease in unit variable cost
• D) Increase in unit variable cost

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Definitions:

Unilateral Contract

A contract where one party makes a promise in exchange for an act by another party, completion of which constitutes acceptance of the contract.

Right to Sue

The legal right of an individual or entity to bring a lawsuit against another party in a court of law.

Unilateral Contract

A contract where one party makes a promise in exchange for an act by another party.

Bilateral Contract

An agreement involving two parties where each side has made a promise to the other.