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.

Grasp the concept of sunk costs and their impact on business decisions.

Understand the principles behind the Third Industrial Revolution and its potential effects on production and transportation costs.

Comprehend how additive manufacturing (3-D printing) affects economies of scale, production costs, and manufacturing industry dynamics.

Differentiate between explicit costs, implicit costs, and the importance of including both in economic cost calculations.

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Definitions:

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