The Break-Even Point in Units Decreases If The

question 113

Multiple Choice

The break-even point in units decreases if the:

• A)flexible (variable)cost per unit increases.
• B)total capacity-related (fixed)costs decrease.
• C)contribution margin per unit decreases.
• D)selling price per unit decreases.

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Definitions:

Opportunity Cost

Forfeiting the immediately lesser choice has a cost attached when decisions are being made.

TV Commercials

Short visual advertisements broadcast on television to promote products, services, or ideas to a wide audience.

Opportunity Cost

The price paid for not selecting the next most favorable choice during decision-making.

TV Commercials

Short advertisements broadcast on television, typically showcasing products, services, or brands to a wide audience.