Question

break even point can be reduced by​

Answer 1

Answer:

Ways to reduce a company's break-even point include 1) reducing the amount of fixed costs, 2) reducing the variable costs per unit—thereby increasing the unit's contribution margin, 3) improving the sales mix by selling a greater proportion of the products having larger contribution margins, and 4) increasing selling ...

Answer 2

Answer:

• By increasing the average contribution margin gained on each transaction, the break-event point can be lowered.
• Reducing variable expenses is one method to achieve this.
• Redesigning items is one way to cut expenses.

Explanation:

Factors that Raise the Break-even Point for a Business:

• Increased sales to customers: When customer sales rise, there is more demand for the product or service.
• Cost of production rising; equipment needing repair;
• Cost of production rising; equipment needing repair;Increase the cost of the goods.
• Cost of production rising; equipment needing repair;Increase the cost of the goods.Decide to outsource.

A business with smaller fixed expenses will typically have a lower break-even point of sales.

For instance, if variable costs do not exceed sales income, a business with no fixed costs will instantly break even after selling its first product.

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