Which of the following would increase the break-even output level?

The break-even output level is the point where a company's total revenues equal its total costs, resulting in zero profit. The formula for the break-even point in units is Fixed Costs / (Selling Price per Unit - Variable Cost per Unit). The denominator, (Selling Price per Unit - Variable Cost per Unit), is known as the contribution margin per unit.

• Higher production costs per unit of output (variable costs) would decrease the contribution margin per unit. A smaller contribution margin means that each unit sold contributes less towards covering fixed costs, thus requiring the company to sell more units to reach the break-even point. Therefore, this increases the break-even output level.
• Lower fixed costs would decrease the numerator in the break-even formula, leading to a lower break-even output level.
• Higher selling prices per unit would increase the contribution margin per unit, meaning fewer units are needed to cover fixed costs, thus decreasing the break-even output level.
• Lower output level is not a factor that *increases* the break-even point; rather, the break-even point is a specific output level that needs to be achieved.