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.
Comments
4 Responses to “What increases a break-even point?”
Leave a Reply
 | Free updates with your feed reader (or) receive our monthly Q&A newsletter by filling out the form below: |
Accounting Cheat Sheet
Receive our popular 15-page Cheat Sheet at no cost when
you join our free newsletter:
|
We keep your email address 100% safe and secure.
Most Recent Questions
- In a bank reconciliation, what happens to the outstanding checks of the previous month?
- Is Accounts Payable a debit or a credit or both?
- Why are loan costs amortized?
- Are repairs to office equipment and factory equipment period costs?
- Why would a company use double-declining depreciation on its financial statements?
- What is a natural business year?
- What is the difference between a ledger and a trial balance?
Questions by Category
- Debits and Credits
- Depreciation
- Financial Accounting
- Financial Ratios
- Improving Profits
- Income Statement
- Inventory and Cost of Goods Sold
- Lower of Cost or Market
- Manufacturing Overhead
- Nonmanufacturing Overhead
- Payroll Accounting
- Present Value of a Single Amount
- Present Value of an Ordinary Annuity
- Standard Costing
- Stockholders' Equity
Why AccountingCoach.com?
AccountingCoach.com is designed to help people without an accounting background easily understand accounting concepts at no cost.
By investing thousands of hours, we have created clear and concise accounting information for both business people and students of all ages.
Read 1,200+ Visitor Testimonials
please give me the full detail on accountingcoach
The site is completely free. See it all at http://www.AccountingCoach.com.
thank you for giving such nice informations about accounting.i hope it can help me a lot specially in my review.thank yu again
Thank you very much for this site.it has been a great helf for my managerial accounting revision.infact i understand it perfectly now more than i did when my accounting tutor thought it to my class.i hope to make a 100% score in my exams.keep up the good work,considering the fact that the website is free.kudos