Which of the Following Statements Is CORRECT If the Variable

question 29

Multiple Choice

Which of the following statements is CORRECT if the variable cost per unit increases while the sale price per unit and total fixed costs remain constant?

• A) The breakeven point decreases.
• B) The contribution margin increases.
• C) The breakeven point remains the same.
• D) The breakeven point increases.

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Definitions:

Point-of-sale Terminals

Electronic systems used at retail locations to process card payments and manage sales transactions.

Preauthorized Payments

Financial transactions that are set up in advance to regularly move funds from one account to another, commonly used for recurring bills and subscriptions.

Magnetic Ink Character Recognition

A technology used to verify the legitimacy and facilitate the processing of checks and other documents, employing magnetic ink.

Special Ink

A unique form of ink used for specific purposes, such as security printing to prevent forgery or duplicity.