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:

Demotion Pay Procedures

Guidelines or practices that govern the reduction in salary that may accompany a demotion within an organization.

Wage Differences

Variations in earnings among workers, which can be attributed to factors such as experience, education, job role, and geographical location.

Incentive Pay

Compensation that is directly tied to an employee’s performance, productivity, or both.

Employee's Performance

The job activities and outcomes that an employee accomplishes in accordance to the expectations and standards of the organization.