If Total Fixed Costs Decrease While the Selling Price Per

question 110

Multiple Choice

If total fixed costs decrease while the selling price per unit and variable costs per unit remain constant, which of the following statements is true?

• A)Contribution margin increases.
• B)Contribution margin decreases.
• C)Breakeven point in units increases.
• D)Breakeven point in units decreases.

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Definitions:

Luxembourg

A small, landlocked country in Western Europe known for its advanced economy and strong financial sector.

Public Notary

A public officer authorized to witness the signing of documents, administer oaths, and perform other acts to help prevent fraud.

Liable in Tort

Being legally responsible for wrongdoing or harm to another as determined by tort law.

Delivery Person

An individual responsible for transporting and delivering goods to customers or businesses.