Which of the following conditions would cause the break even point to - ProProfs Discuss
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Which of the following conditions would cause the break-even point to decrease?

Total fixed costs increase, Unit variable cost decreases, Unit variable cost increases

Asked by Asr, Last updated: Sep 15, 2021

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O. Miller

O. Miller

Have 3 years of Experience in journalism.

O. Miller
O. Miller, Content Optimization Executive, Studied Journalism and Psychology, Austin,Texas

Answered May 10, 2019

A break-even point is significant revenues to cover the total amount of variable and fixed expenses by a company in a specific time. For a company to have a break-even point, it must reduce its fixed costs.

An example is the rent cost is If a company is renting rooms or equipment and one of them are not used, it is best to let go the ones not in used if the contracts are ending. In this way, the costs will be reduced. Decreasing the variable value will be helpful too if the company rely more on e-mails than snail mails then they could drop the envelopes and papers they are buying.

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asr591

asr

asr591
Asr

Answered Sep 11, 2017

Unit variable cost decreases
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