10
QuizMultiple Choice

Break-Even Analysis

Question 10 • FowU - Financial Math - B

Which of the following is not a recommendation the author of the Businesstown.com article makes to lower your break-even point?

Answer
A
increase prices (4-5%)
B
increase operational capital with a bank loan
C
lower fixed expenses (phone, electric, advertising)
D
lower direct costs (labor, purchasing, controlling, inventory)

Explanation

Lowering the break-even point means reducing costs or increasing the amount earned per sale. Increasing prices, lowering fixed expenses, and lowering direct costs can all help do that. Taking out a bank loan increases available capital but does not itself lower the break-even point, so the answer is “increase operational capital with a bank loan.”

AI-written and checked against the verified answer.

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