Which of the Following Statements Is TRUE If the Sales

question 6

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 breakeven point decreases.
• B)The contribution margin decreases 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.