Asked by Abbee Darsey on Jun 03, 2024
Verified
A decrease in the number of units sold will decrease the break-even point.
Break-even Point
The point at which total revenues equal total costs, resulting in no net loss or gain for the business.
- Ascertain the association between the volume of sales, margin of contribution, and net income from operations.
- Use break-even analysis in assorted scenarios to assess the monetary viability of decisions.
Verified Answer
MY
MAYRA YANEZJun 08, 2024
Final Answer :
False
Explanation :
The break-even point is determined by fixed costs, variable costs per unit, and the selling price per unit. A decrease in the number of units sold affects total revenue and profit, but does not directly change the break-even point calculation.
Learning Objectives
- Ascertain the association between the volume of sales, margin of contribution, and net income from operations.
- Use break-even analysis in assorted scenarios to assess the monetary viability of decisions.
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