What causes an shift in break-even point?

There are several reasons why a company's break-even point will

increase. First reason is an increase in the company's fixed costs, such
as rent, depreciation, salaries of managers and executives, etc.

A second reason for an increase in a company's break-even point is a reduction

in the contribution margin. Contribution margin is sales minus the variable costs
and variable expenses. An increase in the variable costs and expenses
without a corresponding increase in selling prices will cause the
contribution margin to shrink. With less contribution margin, it will take
more sales in order to cover the fixed costs and fixed expenses. Of
course, a decrease in selling price will also increase the break-even
point.

Third reason for a change in the break-even point is a change in the mix of
products or services delivered. In other words, some products have higher
contribution margins, and some products have lower contribution
margins. If a company continues to sell the same total number of units
of product, but a greater proportion of the units sold have a lower
contribution margin, the company's break-even point will increase.