ECONOMICS

Detailed explanation-1: -The break-even point will increase by any of the following: An increase in the amount of the company’s fixed costs/expenses. An increase in the per unit variable costs/expenses.

Detailed explanation-2: -Which of the following would increase the break-even output level? Higher production costs per unit of output.

Detailed explanation-3: -An increase in revenue is usually a positive thing for a business, because if revenue increases then profits are also likely to increase. Increasing revenue also allows a business to get past its break-even point (BEP) and increase its margin of safety by selling more products.

Detailed explanation-4: -The break-even point is the point where a company’s revenues equals its costs. The calculation for the break-even point can be done one of two ways; one is to determine the amount of units that need to be sold, or the second is the amount of sales, in dollars, that need to happen.