Which of the Following Changes to a Company's Contribution Income

question 8

Multiple Choice

Which of the following changes to a company's contribution income statement will always lower the break-even point (either in units or in dollars) ?

• A) Sales price increases by 10%.
• B) Sales price decreases by 5%.
• C) Variable costs increase by 10% and fixed costs decrease by 5%.
• D) Variable costs decrease by 5% and fixed costs increase by 10%.

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Definitions:

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Medications used to treat or prevent bacterial infections by killing or inhibiting bacteria growth.

Fitness

A state of physical well-being and ability, often associated with the capability to perform aspects of sports, occupations, and daily activities.

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A significant change in policy, attitude, trend, or preference that moves in a new, often distinctly different, direction.

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