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

question 47

Multiple Choice

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

• A) total fixed costs decrease
• B) unit selling price increases
• C) unit variable cost decreases
• D) unit variable cost increases

---

Definitions:

Relevant Range

The range of activity within which the assumptions made about cost behavior in cost-volume-profit analysis are valid.

Cost Estimates

A predictive calculation of the anticipated expenses for a project or production, used for budgeting and planning purposes.

Marginal Cost

The cost of producing one additional unit of a product or service.

Relevant Range

The range of activity or volume in which the assumptions about fixed costs and variable costs are valid.