Question

If variable costs per unit decreased because of a decrease in utility rates, the break-even point would

Answer 1

Decrease

Step-by-step explanation:

The break-even point will decrease because the variable cost increases when the volume of quantity increases and it decreases when the volume of quantity decreases. Therefore, due to a decrease in utility rates, the decrease in variable cost will decrease the break-even point because it will fall the quantity and revenue simultaneously.