ECONOMICS

Detailed explanation-1: -The break-even point does not change when sales change. It remains the point at which revenue covers variable and fixed costs without any profit or loss.

Detailed explanation-2: -The break-even point will be reduced by any (or any combination) of the following: Decreasing the amount of fixed costs/expenses. Decreasing the per unit variable costs/expenses. Increasing the selling prices without causing a decrease in sales.

Detailed explanation-3: -Break-Even Decrease The result of is a decrease in your break-even point. This means your business must generate less revenue to break even after you increase the contribution margin for your products than prior to the contribution margin increase.