If the Fixed Expenses of a Product Increase While Variable

question 73

Multiple Choice

If the fixed expenses of a product increase while variable expenses and the selling price remain constant,what will happen to the total contribution margin and the break-even point?
$\begin{array}{|l|l|l|}\hline & \text { Contribution margin } & \text { Break-even point } \\\hline \text { A) } & \text { Increase } & \text { Decrease } \\\hline \text { B) } & \text { Decrease } & \text { Increase } \\\hline \text { C) } & \text { No change } & \text { Increase } \\\hline \text { D) } & \text { No change } & \text { No change } \\\hline\end{array}$

• A) Option A
• B) Option B
• C) Option C
• D) Option D

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Definitions:

Break The Ice

An expression referring to the act of initiating conversation or activities in a new or awkward situation to create a more relaxed atmosphere.

Organizational Politics

Informal, unofficial, and sometimes behind-the-scenes efforts to sell ideas, influence an organization, increase power, or achieve other targeted objectives.

Leadership Style

The approach and manner in which a leader conducts their leadership, including how they direct, motivate, and manage their team or organization.

Technical Competence

The mastery or proficiency in specific skills, knowledge, and abilities related to a particular field or discipline, often necessary for effective job performance.