Question
According to the formula of BEP: a) If the fixed costs increase, will the BEP (amount of units that we need to sell) be higher
According to the formula of BEP:
a) If the fixed costs increase, will the BEP (amount of units that we need to sell) be higher or lower? Explain why please.
b)If the contribution increase, will the BEP (amount of units that we need to sell) be higher or lower? Explain why please.
Step by Step Solution
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Step: 1
a If the fixed costs increase the BEP breakeven point will be higher This is because the ...
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Introduction to Managerial Accounting
Authors: Peter Brewer, Ray Garrison, Eric Noreen
7th edition
978-1259675539, 125967553X, 978-1259594168, 1259594165, 78025796, 978-0078025792
