Question

# 15 all other things the same, a decrease in variable expense per unit will reduce the...

15 all other things the same, a decrease in variable expense per unit will reduce the break-even point.
true, false

Break Even Point ( in Units )

= Fixed Costs / Contribution Margin per unit

Contribution margin per unit

= Selling Price per unit – Variable costs per unit

As we can find, if variable cost per unit reduces, the contribution margin per unit will increase which will result in fall in break even point assuming fixed cost and selling price remains the same

So, as per above discussion, the statement in the question is True

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