contestada

A company that desires to lower its break-even point should strive to:_______a. decrease selling prices. b. reduce variable costs. c. increase fixed costs. d. sell more units. e. purchase more than one of the above actions

Respuesta :

Answer:

b. reduce variable costs.

Explanation:

The break even point is the point in which the company has no loss or no profit

It shows a relation between the fixed cost and the contribution margin per unit

where,

Contribution margin per unit is

= Selling price per unit - variable expense per unit

In case to lower the break even point we should decrease the variable cost as the fixed cost and the selling price would remain the same

hence, the correct option is B.