If fixed costs decrease while variable cost per unit and selling price per unit remain constant, the new BEP in relation to the old BEP will be :

CS Executive · Cost and Management Accounting · PYQS · December 2019
If fixed costs decrease while variable cost per unit and selling price per unit remain constant, the new BEP in relation to the old BEP 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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