Page 113 - MAC4861_2 Costing Class Slides Part 1
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TEST 3 - COSTING
Overview
Impact of factors
• All other factors remaining the same:
• An increase in selling price per unit will increase the contribution
per unit and decrease the break-even sales required.
• An increase in variable cost per unit will decrease the contribution
per unit and increase the break-even sales required.
• An increase in total fixed cost will increase the sales required to
break-even.
• Generally, you will first have to determine the nature of the costs
before proceeding with the break-even calculation.
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