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Factors Affecting Break-Even Point

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Discuss how the following affects the break-even point:

- Increase or decrease in unit sales price
- Increase or decrease in variable cost per unit
- Increase or decrease in fixed costs

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Solution Summary

This solution of 180 words discusses how unit sales price, variable cost per unit and fixed costs affects break-even point.

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Breakeven point in units=fixed costs/contribution per unit

- Increase in selling price per unit will reduce the breakeven point as the amount of contribution will be more and the number of units to break even will decrease. On the other hand, if the selling ...

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