When Contribution Margin Per Unit Increases

question 14

Multiple Choice

When contribution margin per unit increases:

• A)break-even output remains the same.
• B)break-even output increases.
• C)break-even output decreases.
• D)fixed costs decrease.

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Definitions:

Account

An accounting form that is used to record the increases and decreases in each financial statement item.

General Ledger

General Ledger is a comprehensive accounting record of all financial transactions that have occurred within a company over a period of time, serving as the foundation for financial statements.

Balance Sheet

A financial statement that provides a snapshot of a company's financial position at a specific point in time, showing assets, liabilities, and shareholders' equity.

Income Statement

A financial statement that shows a company's revenues, expenses, and profits or losses over a specific time period.