Which of the Following Statements Is CORRECT If Total Fixed

question 124

Multiple Choice

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

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

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Definitions:

Payroll Register

A document that summarizes the wages, deductions, and net pay of all employees for a specific payroll period.

Gross Wage

The total amount of salary or wages earned by an employee before any deductions are made.

Employer Cost

The total expense borne by an employer to employ workers, including salaries, benefits, and taxes.

Net Pay

The amount of money an employee takes home after deductions like taxes and retirement contributions are subtracted from their gross pay.