If fixed cost decreases while variable cost per unit remains constant, the new B.E.P. in relation to the old B.E.P. will be :

CS Executive · Cost and Management Accounting · PYQS · December 2020
If fixed cost decreases while variable cost per unit remains constant, the new B.E.P. in relation to the old B.E.P. will be :
(A) Lower
(B) Higher
(C) Unchanged
(D) Indeterminate

Answer & Explanation:

Correct Answer: Option (A)

Official answer key: (A).

Topics: Marginal Costing

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