which of the following is not a recommendation the author of the businesstown.com article makes to lower…

which of the following is not a recommendation the author of the businesstown.com article makes to lower your break - even point?\na. increase prices (4 - 5%)\nb. increase operational capital with a bank loan\nc. lower fixed expenses (phone, electric, advertising)\nd. lower direct costs (labor, purchasing, controlling, inventory)

which of the following is not a recommendation the author of the businesstown.com article makes to lower your break - even point?\na. increase prices (4 - 5%)\nb. increase operational capital with a bank loan\nc. lower fixed expenses (phone, electric, advertising)\nd. lower direct costs (labor, purchasing, controlling, inventory)

Answer

Brief Explanations:

In business, the break - even point is related to costs and revenues. Increasing prices can increase revenue per unit and lower the break - even point. Lowering fixed and direct costs reduces the total costs needed to cover, thus lowering the break - even point. Increasing operational capital with a bank loan doesn't directly lower the break - even point as it doesn't reduce costs or increase per - unit revenue in a way that impacts the break - even calculation.

Answer:

B. increase operational capital with a bank loan