Which of the Following Statements Is CORRECT If Total Fixed

question 37

Multiple Choice

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

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

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Definitions:

Cheques Deposited

The act of placing a check into a bank account for processing and eventual availability of funds.

Electronic Lockboxes

Secure electronic devices used for safe storage and controlled access to keys or assets.

Disbursement Float

The time delay between when a check is issued and when it is actually deducted from the payer's bank account, affecting cash management.