Changes in price and costs (AO2, AO4)This section of the IB syllabus requires students to understand the effects of changes in price or cost on the break-even quantity, profit and margin of safety, using graphical and quantitative methods (AO2, AO4).An increase in the selling price reduces a firm’s break-even level of output. Diagrammatically, the higher price results in a greater gradient of the total revenue line...