If the Fixed Costs for a Product Decrease and the Variable

question 2

Multiple Choice

If the fixed costs for a product decrease and the variable costs (as a percentage of sales dollars) decrease,what will be the effect on the contribution margin ratio and the break-even point respectively?

• A)a
• B)b
• C)c
• D)d

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Definitions:

Personality Characteristics

Personality Characteristics are traits or qualities that form an individual's distinctive character and behavioral tendencies.

Stream Terraces

Flat, bench-like landforms parallel to a stream, formed by the erosion of a valley by the stream or by fluctuations in sea level.

Incised Downward

A process where valleys or channels are cut deeply into the landscape, often by rivers or glaciers.

Floodplains

Flat areas adjacent to rivers that are subject to flooding and are composed of sediment deposited by the river.