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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