How Do You Reduce The Break-even Point?

1.	How Do You Reduce The Break-even Point?
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 prices so long as the number of units sold will not DECLINE significantly. 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 prices so long as the number of units sold will not decline significantly.

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 prices so long as the number of units sold will not DECLINE significantly.

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 prices so long as the number of units sold will not decline significantly.

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