What increases a break-even point?
The break-even point will increase when the amount of fixed costs and expenses increases. The break-even point will also increase when the variable expenses increase without a corresponding increase in the selling prices.
A company with many products can see its break-even point increase when the mix of products changes. In other words, if a greater proportion of lower contribution margin products are sold, the break-even point will increase. (Contribution margin is selling price minus variable expenses.)
Learn more about Break-even Point.
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