If the Variable Cost Per Unit Increases,what Is the Effect

question 91

Multiple Choice

If the variable cost per unit increases,what is the effect on the break-even point? (Assume no other changes.)

• A) The break-even point increases.
• B) The break-even point decreases.
• C) The break-even point remains the same.
• D) The break-even point is zero.

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Definitions:

Financial Statements

Official documentation of a business, individual, or entity's financial condition and operations, normally comprising the income statement, balance sheet, and statement of cash flows.

Statement of Cash Flows

A financial statement that shows how changes in balance sheet accounts and income affect cash and cash equivalents, dividing activities into operating, investing, and financing.

Statement of Stockholders' Equity

A financial statement that shows changes in the value of a company’s equity over a specified period.

Income Statement

The income statement is a financial document that reports a company's financial performance over a particular period, showing revenues, expenses, and net income or loss.