Answer:
a. decreases.
Explanation:
The formula to compute the break-even point in units is shown below:
= (Fixed expenses ) ÷ (Contribution margin per unit)
where,
Contribution margin per unit = Selling price per unit - Variable expense per unit
Since the variable cost and price remain the same but the fixed cost decreases that show a direct relationship with the break-even. Therefore, decreases in fixed cost would result in decreases in break-even
