If Variable Costs Increase by 5% Without a Corresponding Increase

question 163

Multiple Choice

If variable costs increase by 5% without a corresponding increase in selling price,the number of units needed to breakeven will ________.

• A) decrease
• B) remain the same
• C) increase
• D) cannot be determined

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Definitions:

Methane

A simple alkane hydrocarbon with a molecular formula of CH4, known as the main component of natural gas.

Water Molecule

A water molecule consists of two hydrogen atoms bonded to one oxygen atom (H2O), fundamental for all known forms of life.

Representation

The act of depicting or the state of being depicted, often used in the context of graphics, data visualization, or symbolic systems.

Ethane

A colorless, odorless gas that is the second simplest alkane, consisting of two carbon atoms and six hydrogen atoms (C2H6), used as a fuel and a petrochemical feedstock.