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Ways to reduce a company's break-even point include1) reducing the amount of fixed costs,2) reducing the variable costs per unit---thereby increasing the unit's contribution margin,3) improving the sales mix by selling a greater proportion of the products having larger contribution margins, and4) increasing selling prices so long as the number of units sold will not decline significantly.
1. By reducing fixed costs,
2. By reducing variable cost per unit,
3 By increasing sales price without a corresponding increase in variable cost.
By reducing the unit cost.
2 options:
1) Reduce your ammount of fixed costs
2) Increase you operational margin
As both options are not mutually exclusive, the best is to pursue both (objectives) at the same time
