alleryStart learning →Which action lowers the break-even point?
ACutting fixed costs
BLowering selling price
CRaising fixed rent
DRaising variable cost
Answer & Solution
Correct answer: A. Cutting fixed costs
Lower fixed costs mean fewer units are needed to cover them, so break-even falls.
Keep practising Cost Volume Profit Analysis and Pricing Decisions
Browse all Cost Volume Profit Analysis and Pricing Decisions questions for CA Final, or explore more Cost and Management Accounting topics.
Related questions
Fixed costs are Rs 20,000 and variable cost is Rs 6 a unit. Total cost at 4,000 units?Margin of safety shows how far sales can fall before what?A firm needs 200 tables to break even but sells fewer. How is it operating?Target costing was developed independently in the USA and which country?Market-driven target costing identifies a product's what?Which technique is most critical in reaching a target cost?Target costing is described as which approach to cost management?A product will sell at Rs 500 and needs a 20% margin on price. What is the target cost?