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:

Complex Adaptations

Traits that have evolved through the intricate interaction of many genetic and environmental factors to solve specific problems for survival or reproduction.

Cervical Vertebrae

The vertebrae located in the neck region of the spine, distinct for their small size and the presence of foramina in the transverse processes for the passage of blood vessels.

Pediatric Cancers

Cancers that occur in children, encompassing a range of different types of cancer that can affect various parts of the body.

Convergent Evolution

The process by which unrelated or distantly related organisms evolve similar traits independently, often due to similar environmental pressures.