If the Sales Price Per Unit Increases While the Variable

question 63

Multiple Choice

If the sales price per unit increases while the variable cost per unit and total fixed costs remain constant, which of the following statements is true?

• A)The contribution margin decreases and the breakeven point decreases.
• B)The contribution margin increases and the breakeven point decreases.
• C)The contribution margin increases and the breakeven point increases.
• D)The contribution margin decreases and the breakeven point increases.

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Definitions:

Metro Group

A multinational diversified retail and wholesale group, known for its chain of stores offering a wide range of goods and services.

RFID

Radio Frequency Identification, a technology that uses electromagnetic fields to automatically identify and track tags attached to objects.

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A technology using radio waves to identify and track objects, animals, or people by means of tags attached to them.

Franchise System

A franchise system is a business model that allows individuals to own and operate a branch of a larger company, using its brand, trademark, and products.