If a Product's Variable Cost Per Unit Increases While the Selling

question 201

Multiple Choice

If a product's variable cost per unit increases while the selling price and fixed costs remain constant, what will happen to the breakeven point?

• A)It will increase.
• B)It will decrease.
• C)It will remain the same.
• D)It may increase or decrease, depending on how much the variable cost per unit changes.

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Definitions:

Payable

Refers to an amount of money that is owed and should be paid, often within a specific period of time.

Instrument

Refers to a legal document formalizing an agreement or right, often used in financial transactions.

Certified Check

A check that is accepted by the bank from which the funds are drawn.

Accepted

A term indicating that an offer has been formally agreed to, creating a binding contract between parties.