The break-even point will increase by any of the following: An increase in the amount of the company's fixed costs/expenses. An increase in the per unit variable costs/expenses. A decrease in the company's selling prices.
A company's break-even point will be reduced by the following: Decreasing the amount of fixed costs/expenses. Reducing the variable costs/expenses per unit. Improving the sales mix.
Mixed cost is also known as semi-variable cost or semi-fixed cost.
Terms in this set (10) Which of the following will increase the break-even quantity? reduction in price will cause the break-even quantity to increase.
Which of the following changes would cause a company's breakeven point in sales to increase? The company's total fixed costs increases.
The correct answer is 'True. ' Break-even point is the point where revenues equal the total of all expenses including the cost of goods sold. If revenues minus all expenses (fixed and variable, and including cost of goods sold) equals zero, you are at the break-even point.
Which of the following will cause income determined with absorption costing to be higher than income determined with direct costing? units produced are greater than units sold.
Total fixed costs do not change even when volume changes. Thus, an increase in volume will leave the total fixed cost unchanged.