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    Effects on break even points.

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    Would each of the following increase, decrease, or have an indeterminant effect on a firm's breakeven point (unit sales)?

    a. An increase in the sales price with no change in unit costs.
    b. An increase in fixed costs accompanied by a decrease in variable costs.
    c. A new firm decides to use MACRS depreciation for both book and tax purposes
    rather than the straight-line depreciation method.
    d. Variable labor costs decline; other things are held constant.

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    https://brainmass.com/business/business-math/effects-break-even-points-131567

    Solution Preview

    Break even point= Fixed costs/ (Sales price per unit - unit variable costs)

    a. An increase in the sales price with no change in unit costs.
    It will lead to reduction in break even point

    b. An ...

    Solution Summary

    Effects on break-even points are investigated.

    $2.19

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