Question
The break-even point can be affected by Blank______.
Multiple select question.
sales mix
total fixed costs
contribution margin per unit
net operating income
Multiple select question.
sales mix
total fixed costs
contribution margin per unit
net operating income
Answers
GPT-4o mini
The break-even point can be affected by the following:
- **Sales mix**: The proportion of different products sold can change the overall contribution margin, thus affecting the break-even point.
- **Total fixed costs**: An increase in total fixed costs will raise the break-even point since you need to cover more expenses before making a profit.
- **Contribution margin per unit**: Changes in the contribution margin per unit directly influence the break-even point. Higher contribution margins reduce the break-even point, while lower contribution margins increase it.
**Net operating income** is a result of reaching a level of sales above the break-even point and does not directly affect the break-even point itself.
So the correct answers are: **sales mix, total fixed costs, contribution margin per unit**.
- **Sales mix**: The proportion of different products sold can change the overall contribution margin, thus affecting the break-even point.
- **Total fixed costs**: An increase in total fixed costs will raise the break-even point since you need to cover more expenses before making a profit.
- **Contribution margin per unit**: Changes in the contribution margin per unit directly influence the break-even point. Higher contribution margins reduce the break-even point, while lower contribution margins increase it.
**Net operating income** is a result of reaching a level of sales above the break-even point and does not directly affect the break-even point itself.
So the correct answers are: **sales mix, total fixed costs, contribution margin per unit**.