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:

Organizational Profits

The financial gains achieved by a company after subtracting all expenses, taxes, and costs from its total revenue.

Quality Commitment

A pledge or an obligation undertaken by a company to uphold high standards in its products or services.

Job Satisfaction

The level of fulfillment, contentment, and happiness that an individual experiences in their job.

High Level

Pertaining to activities or decisions that involve overarching goals, strategies, or priorities, often affecting an entire organization.