Question

Which of the following is not a recommendation the author of the Businesstown.com article makes to lower your break-even point?
a.
increase prices (4-5%)
b.
increase operational capital with a bank loan
c.
lower fixed expenses (phone, electric, advertising)
d.
lower direct costs (labor, purchasing, controlling, inventory)


Please select the best answer from the choices provided

A
B
C
D

Answer 1

B

Increasing operational capital with a bank loan does not lower the break-even point; the others (raising prices, cutting fixed or direct/variable costs) do.