Engineering Board Exam Reviewer · Engineering Management · medium

If the selling price per unit increases while fixed and variable costs remain the same, the break-even quantity will:

  1. Decrease
  2. Increase
  3. Remain the same
  4. Become zero

Answer

A. Decrease

Solution

A higher contribution margin per unit means fewer units are needed to cover fixed costs.

More Engineering Management questions

  1. A firm has fixed costs of ₱120,000 and variable costs of ₱80 per unit. At what selling price will it break even at 4000 units?
  2. A company's break-even point is 5000 units and it currently sells 8000 units. What is its margin of safety as a percentage of sales?
  3. A product has a contribution margin ratio of 40% and fixed costs of ₱500,000. What sales revenue is needed to break even?
  4. Fixed costs are ₱500,000 per year, price is ₱250/unit and variable cost is ₱150/unit. How many units must be sold to earn a profit of…
  5. Fixed costs are ₱500,000, price ₱250/unit and variable cost ₱150/unit. What is the profit when 8000 units are sold?
  6. Fixed costs are ₱500,000, the selling price is ₱250 per unit and the variable cost is ₱150 per unit. What are the break-even sales in pesos?
  7. A company has fixed costs of ₱500,000 per year. Its product sells for ₱250 per unit with a variable cost of ₱150 per unit. What is the…
  8. A project uses 3 activities: 8 days at 10 workers, 12 days at 5 workers and 6 days at 8 workers. How many worker-days are required in total?
  9. A project's critical path is 20 days. Two critical activities can be crashed: X at ₱2,000/day (max 2 days) and Y at ₱3,500/day (max 3…
  10. An activity has a normal time of 8 days at a cost of ₱10,000 and a crash time of 5 days at a cost of ₱14,000. What is its crash cost per…

All Engineering Management Reviewer questions