Which of the Following Statements Is CORRECT If Total Fixed

question 48

Multiple Choice

Which of the following statements is CORRECT if total fixed costs decrease while the sales price per unit and variable costs per unit remain constant?

• A)The contribution margin increases.
• B)The contribution margin decreases.
• C)The breakeven point increases.
• D)The breakeven point decreases.

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Definitions:

Non Binding Price Floor

A non binding price floor is set below the market equilibrium price, having no effect on the market because it does not restrict supply or demand.

Explicit And Implicit Coercion

Refers to the overt and subtle ways in which individuals or groups may be forced or pressured into behaving in certain ways.

Desirable Consequences

Positive outcomes or benefits that result from a particular action or set of actions.

Proposed Changes

Suggestions or plans put forward for consideration or action to modify or alter existing methods, processes, or structures.