Break-even is not affected with changes in ___________________

Question

BlackTom AI · Accepted Answer

The question asks which factor does not affect the break-even point, given that this is a multiple_answers item.
Option 1: 'Sales price per unit' — If the price per unit changes, the contribution margin (price minus variable cost) changes, which directly alters how many units are needed to cover fixed costs. Therefore, break-even is affected by changes in price.
Option 2: 'Total fixed cost' — Break-even point in units is fixed costs divided by contribution margin. When fixed costs change, the break-even quantity changes as well. Hence, this option would affect break-even.
Option 3: 'Variable cost per unit' — The variable cost per unit reduces the contribution margin; a higher variable cost means more units are needed to reach break-even. Thus, break-even is influenced by variable cost per unit.
Option 4: 'Number of units sold' — The actual number of units sold does not determine the calculated break-even point itself; it is the outcome relative to the break-even quantity. Changes in the number of units sold do not alter the break-even calculation, which is based on price, fixed costs, and variable costs. Therefore, this factor does not affect the break-even point.

Break-even is not affected with changes in ___________________多项选择题

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