Accounting · Break-Even Analysis
In a standard linear break-even chart where total cost and total revenue are represented by straight lines intersecting at the break-even point, which statement is true?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Selling price per unit increases and fixed cost increases beyond the break-even point
- 2Variable cost per unit is constant but selling price per unit increases after break-even
- 3Selling price per unit is constant but variable cost per unit increases after break-even
- 4Both selling price per unit and variable cost per unit are constant✓
Correct answer
Both selling price per unit and variable cost per unit are constant
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