Which of the Following Statements Is TRUE If the Variable

question 6

Multiple Choice

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

• A) The contribution margin increases and the break-even point decreases.
• B) The contribution margin decreases and the break-even point decreases.
• C) The contribution margin increases and the break-even point increases.
• D) The contribution margin decreases and the break-even point increases.

---

Definitions:

Trade Secrets

Information, including formulas, practices, processes, designs, instruments, patterns, or compilations of information, that is not generally known or reasonably ascertainable, by which a business can obtain an economic advantage over competitors.

Illegal Contract

An agreement that is against the law and unenforceable by the judicial system.

Illegal Contracts

Agreements that are against the law, whether due to the nature of the contract, the way it was entered into, or the purpose of the agreement.

Accounting Practice

The procedures and guidelines followed by accountants to record, report, and manage financial transactions and positions.