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In breakeven analysis, if fixed costs rise, then the breakeven point will _.

 

• fall

 

• rise

 

• stay the same

 

• none of the above

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تم إضافة السؤال من قبل Shazia Anees , Assistant Manager Finance , Arham Trading Company
تاريخ النشر: 2015/05/25
Shahbaz Hayder
من قبل Shahbaz Hayder , Group Head of Finance , Sharif Group of Companies

Rise is the correct answer.

Lynne Alexander
من قبل Lynne Alexander , Financial Controller , Arlo Insurance Brokers LLC

Break even point will rise as increased costs will require increased productivity.

مستخدم محذوف‎
من قبل مستخدم محذوف‎

Answer is

 

>>>>>>Rise in Break even point

Asad Ahmed
من قبل Asad Ahmed , Manager Finance & Company Secretary , Connect Communications Pvt. Ltd.

If fixed cost rises then the break even point will also rise, if the Variable price per unit and Sales price per unit remain constant 

Saji Soman
من قبل Saji Soman , Chief Accountant , Al Redha Insurance Brokers LLC. (Dubai)

The Break even sales will increase

Disha Acharya
من قبل Disha Acharya , Finance Manager , OWS CAPITAL & EVENTS MANAGEMENT LLC

IF FIXED COST RISES, breakeven point will also rise.

Breakeven point = Fixed Cost / Contribution per unit.

Hence increase in fixed cost with Contribution per unit remaining the same, will bring a rise in Breakeven point.

Ahmed Abdi Mahad
من قبل Ahmed Abdi Mahad , Director of Internal Auditing Directorate , Jigjiga University

All other things being constant, an increase in the fixed costs will result an increase in the break even point. Thus, choice B, rise is the correct answer.

Muhammad Ramzan Tufail  ACCA
من قبل Muhammad Ramzan Tufail ACCA , Assistant Finance Manager , Eltizam Asset Management Group

Rise....

 

Thank you..>>>>>>>>>>>>>>>

PRADEEP VELAYUDHAN
من قبل PRADEEP VELAYUDHAN , Chief Accountant , Super Group

will rise-------------------------------------------

RASHID K V
من قبل RASHID K V , Accountant , Catco Aerospace FZE

An increase in the Fixed Cost will result a proportionate increase in the BEP where as  a decrease in contribution margin of the product also increase the BEP.

Almutaz Bakry Sidahmed
من قبل Almutaz Bakry Sidahmed , Internal Audit Manager , Banan real estate

The increase of fixed cost will result in an inrease in break even point, it is a direct relationship, accordingly the answer is (rise).

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