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.