Which One of the Following Statements About Break-Even Analysis,as We

question 102

Multiple Choice

Which one of the following statements about break-even analysis,as we applied it to evaluating products or services,is BEST?

• A)Break-even analysis assumes that the cost function is linear and consists of fixed costs plus variable costs times volume.
• B)The break-even quantity will increase when the change in variable cost per unit is identical to the change in unit price.
• C)Increasing the price,while keeping the variable cost per unit constant,increases the break-even quantity.
• D)Increasing the fixed costs tends to decrease the break-even quantity.

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