When the variable cost per unit (v) increases but the fixed cost (FC) and the revenue...
When the variable cost per unit (v) increases but the fixed cost (FC) and the revenue per unit (r) remain constant, then:
Question 17 options:
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The break-even point moves to the left. |
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The break-even point stays in the same place. |
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The break-even quantity increases. |
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The break-even quantity decreases. |
Homework Answers
Ans- (D)
As average variable cost
increases,average total cost also increases ,so quantity will
decrease at the breakeven point as shown in the figure. Breakeven
point is the point at which P= Atc
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