Which of the Following Statements Is TRUE If Total Fixed

question 141

Multiple Choice

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

• A) Contribution margin increases.
• B) Contribution margin decreases.
• C) Break-even point in units decreases.
• D) Break-even point in units increases.

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Definitions:

Fast Food Chains

A series of restaurants offering quick service and a menu of fast food cuisine spread across multiple locations.

Cartels

Associations of independent businesses or countries that work together to control prices and limit competition within an industry or commodity market.

Colluders

Parties that engage in a secret agreement, often illegal, to limit open competition by deceiving, misleading, or defrauding others of their legal rights.

Cutthroat Competitors

Businesses or individuals that engage in aggressive competition, using tactics that may include undercutting prices or other practices considered harsh or unfair.