Which of the Following Statements Is TRUE If the Fixed

question 164

Multiple Choice

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

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

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Definitions:

Business Plan

A detailed document outlining the strategy, objectives, and financial projections of a business, used for planning and seeking investment.