All of the Following Will Make the Break-Even Point Increase,other

question 23

Multiple Choice

All of the following will make the break-even point increase,other things equal,EXCEPT

• A) fixed costs increase.
• B) the sales price per unit is decreased due to competition.
• C) variable costs increase due to higher direct labor cost.
• D) the number of units sold for the year decreased.

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Definitions:

Marginal Revenue

The additional income generated from selling one more unit of a good or service, crucial for decision-making about production levels.

Total Revenue

The overall amount of money generated by a firm from selling its goods or services.

Variable Costs

Expenses that change in proportion to the activity of a business.

Profit-maximizing

A strategic objective of businesses where they aim to achieve the highest possible profit from their operations.