Which of the Following Statements Is TRUE If the Sales

question 163

Multiple Choice

Which of the following statements is TRUE if the sales price per unit increases while the variable cost per unit and total fixed costs remain constant?

• A) The contribution margin increases and the break-even point decreases.
• B) The contribution margin decreases and the break-even point decreases.
• C) The contribution margin increases and the break-even point increases.
• D) The contribution margin decreases and the break-even point increases.

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Definitions:

Labour Market Shelters

Economic areas or sectors less exposed to the competitive pressures of the global market, often providing more stable employment.

Non-standard Work

Employment that deviates from traditional norms in terms of hours, permanency, or contract conditions, often lacking in job security and benefits.

Divergent Thinking

A thought process or method used to generate creative ideas by exploring many possible solutions.

Convergent Thinking

A cognitive process in which the focus is directed at arriving at a single, correct solution to a problem.