If the Fixed Costs for a Product Increase and the Variable

question 83

Multiple Choice

If the fixed costs for a product increase and the variable costs (as a percentage of sales dollars) increase, what will be the effect on the contribution margin ratio and the break-even point, respectively?
$\begin{array} { cc} & \text { Contributim Margin Ratio } & \text { Break-even Point } \\\end{array}$
A. $\begin{array} { cc} &&&& \text { Decrease } & &&&& && \text { Increase } \\\end{array}$
B. $\begin{array} { cc} &&&& \text { Increase } & &&&& && \text { Decrease } \\\end{array}$
C. $\begin{array} { cc} &&&& \text { Decrease } & &&&& && \text { Decrease } \\\end{array}$
D. $\begin{array} { cc} &&&& \text { Increase } & &&&& &&\text { Increase } \\\end{array}$

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Definitions:

Vestibular Sacs

Structures in the inner ear that help maintain balance by sensing changes in head position, contributing to the vestibular system.

Olfactory Receptors

Specialized nerve cells in the nose involved in detecting and identifying different odors.

Sensorineural Hearing Loss

A type of hearing loss resulting from damage to the inner ear or the nerve pathways from the ear to the brain.

Cochlea

A spiral-shaped, fluid-filled inner ear structure responsible for converting sound waves into electrical signals the brain can understand.