Which of the Following Statements Is CORRECT If the Variable

question 76

Multiple Choice

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

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

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Definitions:

Crop Rotation

The agricultural practice of growing different types of crops in the same area in sequenced seasons to improve soil health and reduce pests and diseases.

Strip Cropping

An agricultural practice that involves planting crops in long, narrow strips to reduce erosion and runoff.

Erosion

The process by which natural forces, such as water or wind, remove soil, rock, or dissolved material from one location and transport it to another.

Strip Cropping

An agricultural practice where crops are grown in alternating strips to reduce soil erosion and encourage biodiversity.