What Effect Would an Increase in Fixed Costs Have on the Break-Even

question 43

Multiple Choice

What effect would an increase in fixed costs have on the break-even point and the contribution margin?
Break-even Point Contribution Margin

• A)Increase Increase
• B)Increase Decrease
• C)Decrease Increase
• D)Decrease Decrease

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Definitions:

Sex Glands

Organs that produce sex hormones and gametes, such as ovaries in females and testes in males.

Cortisol

A steroid hormone released in response to stress and low blood-glucose concentration, involved in metabolism and immune response.

General Adaptation Syndrome

A three-phase response model to stress that includes alarm, resistance, and exhaustion stages, proposed by Hans Selye.

Exhaustion

A state of extreme physical or mental fatigue, often resulting from prolonged stress or overwork.