If the Fixed Costs for a Product Decrease and the Variable

question 107

Multiple Choice

If the fixed costs for a product decrease and the variable costs (as a percentage of sales dollars) decrease,what will be the effect on the contribution margin ratio and the break-even point,respectively? $$\begin{array} { | c | c | c | } \hline & \text { Contribution Margin Ratio } & \text { Break-eren Point } \\\hline \text { A. } & \text { Decreased } & \text { Increased } \\\hline \text { B. } & \text { Increased } & \text { Decreased } \\\hline \text { C. } & \text { Decreased } & \text { Decreased } \\\hline \text { D. } & \text { Increased } & \text { Increased } \\\hline\end{array}$$

• A) Option A
• B) Option B
• C) Option C
• D) Option D

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Definitions:

Production-Centred

Focused or centered around the production or manufacturing process within an organization.

Performance Results

The outcomes or achievements of an individual's or organization's work or activity, measured against goals or standards.

Sensitivity Needs

Requirements related to understanding and responding to the emotions and personal matters of others.

Performance Monitoring

The regular observation and evaluation of an individual's or organization's performance against defined benchmarks or objectives.