Which of the Following Statements Is True If Total Fixed

question 86

Multiple Choice

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

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

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Definitions:

Real Property

Refers to land and anything permanently attached to the land, like buildings and structures.

Stock Investments

The act of putting money into financial schemes, shares, property, or a commercial venture with the expectation of achieving a profit, particularly through the purchase of equity securities in companies.

Tangible

Capable of being touched or felt; having physical substance.

Intangible Personal Property

Non-physical assets owned by an individual or a business, such as intellectual property, stocks, or bonds.