If the Contribution Margin Per Unit Decreases, the Break-Even Point

question 54

Multiple Choice

If the contribution margin per unit decreases, the break-even point in units

• A) will increase.
• B) will decrease.
• C) will remain the same.
• D) cannot be determined from the information given.

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Definitions:

Tacit Knowledge

Knowledge that is difficult to transfer to another person by means of writing it down or verbalizing it, often gained through personal experience.

Civilian Conservation Corps

A public work relief program in the United States during the Great Depression that provided unskilled manual labor jobs related to the conservation and development of natural resources.

NRA Codes

Regulations established by the National Recovery Administration during the New Deal in the United States to set fair competition standards, establish minimum wages, and limit work hours to stimulate economic recovery.