If the Variable Cost Per Unit Decreases While the Sales

question 90

Multiple Choice

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

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

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Definitions:

Job Design

The process of organizing tasks, duties, and responsibilities into a productive unit of work to enhance job satisfaction and performance.

Organizational Objectives

The specific goals that a company aims to achieve, which guide its operations and strategic planning.

Industrial Engineering

A branch of engineering dealing with the optimization of complex processes, systems, or organizations by eliminating waste of time, money, materials, and other resources.

Job Characteristics Model

A framework that posits that five core job characteristics (skill variety, task identity, task significance, autonomy, and feedback) influence job satisfaction and motivation.