If a Firm's Variable Costs Per Unit Increase,the Firm's ________

question 153

Multiple Choice

If a firm's variable costs per unit increase,the firm's ________.

• A) financial breakeven point will decrease
• B) operating breakeven point will increase
• C) sale price per unit will decrease
• D) fixed costs per unit will increase

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Definitions:

Accounts Receivable

Outstanding payments from customers for goods or services a company has already delivered.

Average Collection Period

The average number of days it takes for a business to receive payments from its customers for invoices issued, indicative of the effectiveness of a company's credit and collection policies.

Net Sales

The amount of sales generated by a company after deductions for returns, allowances for damaged or missing goods, and discounts.

Accounts Receivable

Amounts owed to a business by its customers for goods or services that have been delivered but not yet paid for.