If the Fixed Costs Increase While the Sales Price Per

question 263

Multiple Choice

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

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

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Definitions:

Spontaneously

Occurring without apparent external cause or planning, often referring to actions, reactions, or events that are unexpected or unplanned.

Rehearsal

A practice session in preparation for a public performance, presentation, or event, aiming to perfect the delivery.

Understand First

The principle of comprehending or grasping the meaning, significance, or nature of something before taking action or forming a judgement.

Fast Mapping

A process of quickly determining a word’s meaning, which facilitates children’s vocabulary development.