If a Company Sells a Single Product and the Selling

question 103

Multiple Choice

If a company sells a single product and the selling price per unit and the variable cost per unit both increase by 5% while fixed costs remain the same, then

• A) Contribution margin per unit increases and breakeven in units increases.
• B) Contribution margin per unit increases and breakeven in units decreases.
• C) Contribution margin remains the same and breakeven in units increases.
• D) Contribution margin decreases and breakeven in units decreases.

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