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In Financial Management what increases a break-even point?

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Question ajoutée par Rehan Qureshi , Financial Consultant , Self Employeed
Date de publication: 2014/01/10
Rehan Qureshi
par Rehan Qureshi , Financial Consultant , Self Employeed

The break-even point will increase when the amount of fixed costs and expenses increases. The break-even point will also increase when the variable expenses increase without a corresponding increase in the selling prices. A company with many products can see its break-even point increase when the mix of products changes. In other words, if a greater proportion of lower contribution margin products are sold, the break-even point will increase. (Contribution margin is selling price minus variable expenses.)

Mohammad Tohamy Hussein Hussein
par Mohammad Tohamy Hussein Hussein , Chief Executive Officer & ERP Architect , Egyptian Software Group

Increasing the product(s)' fixed costs.

Jose Miguel Lucas Martins
par Jose Miguel Lucas Martins , IT Director - Robotic Process Automation (RPA) , Novo Banco

Either and increase in fixed costs or a decrease of operational margin

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