What increases a break-even point?

Definition of Break-even Point

The break-even point is the volume of sales in units or in dollars that is equal to a company's total expenses (including the cost of goods sold). In other words, it is the level of sales where the income statement will report a net income of exactly zero.

Examples Causing a Break-even Point to Increase

The break-even point will increase by any of the following:

In short, if a company's contribution margin per unit decreases, the company's break-even point will increase.