Question

If your company decides to lower the selling price of a product, what will you need to do to reach the break-even point?

Question 3 options:

improve the quality of the product


increase your variable costs


reduce your customer list


sell more units

Answer 1

If your company decides to lower the selling price of a product, to reach the break-even point, you will need to **sell more units**. Lowering the selling price means that you will need to sell a higher volume of units to cover your fixed and variable costs in order to break even.