If the Variable Cost Per Unit Increases,what Is the Effect

question 91

Multiple Choice

If the variable cost per unit increases,what is the effect on the break-even point? (Assume no other changes.)

• A) The break-even point increases.
• B) The break-even point decreases.
• C) The break-even point remains the same.
• D) The break-even point is zero.

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Definitions:

Gross Savings

Gross Savings refers to the total amount of savings retained by an economy after all expenses have been met but not including depreciation.

GDP

Gross Domestic Product, the total monetary or market value of all the finished goods and services produced within a country's borders in a specific time period.

Malthusian Theory

A theory proposed by Thomas Malthus suggesting that population growth will outpace agricultural production and lead to widespread poverty and famine.

Geometric Progression

A sequence of numbers where each term after the first is found by multiplying the previous one by a fixed, non-zero number called the common ratio.