Which of the Following Would Not Cause the Break-Even Point

question 2

Multiple Choice

Which of the following would not cause the break-even point to change?

• A) Variable costs per unit increases.
• B) Fixed costs increases.
• C) Product mix shifts towards the more expensive products.
• D) Sales volume decreases.

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Definitions:

Raw Materials

Basic materials used in the production process before being converted into finished products.

Direct Labor-Hours

The aggregate working hours of workers directly participating in creating products.

Cash Collections

The process of gathering all received cash and cash equivalents, including payments from customers and other sources.

Direct Labor Cost

The compensation given to workers who are directly engaged in manufacturing products or providing services.