Which of the Following Statements Is TRUE If the Fixed

question 177

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

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