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break even sales

fenil 12 April 2020 at 17:10 PM

As fixed costs for a firm rise, all other things held constant, the breakeven point will a) Be unchanged b) Not be impacted by fixed costs c) Increase d) Decrease

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FACULTY 15 May 2020 at 04:49 PM

Increase (Option C)

for ex - if sales =100000 contribution =30000,contribution margin =30% fixed cost = 20000

                then break even sales =66666         (20000/30%)

if fixed cost is increased to 30000

then break even sales would be = 30000/30%           =100000

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