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:

Strategic Marketing Process

A systematic approach to identifying and analyzing market opportunities, developing marketing strategies to address those opportunities, and implementing and controlling the strategy to achieve business objectives.

Situational Analysis

An assessment of an organization's internal and external environments to understand its capabilities, customers, and business environment.

Gap Analysis

A type of analysis that compares the differences between the consumer’s expectations about and experiences with a service based on dimensions of service quality.

Diversification Analysis

Diversification Analysis involves assessing the potential benefits and risks of expanding a company's range of products or markets as a strategy to reduce dependence on a single product or market.