Which of the Following Statements Is True If the Variable

question 148

Multiple Choice

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

• A) The breakeven point decreases.
• B) The contribution margin increases.
• C) The breakeven point remains the same.
• D) The breakeven point increases.

---

Definitions:

Auditing Function

The process of examining and verifying a company's financial statements and records to ensure accuracy and compliance with accounting standards.

Employee Pension Plan

A retirement savings program sponsored by an employer which provides income to employees after they retire.

Physical Location

The actual and geographical site or place of an entity such as a business, event, or activity.

NASDAQ

An American stock exchange and the second-largest stock exchange in the world by market capitalization, known for its high concentration of technology companies.