Which of the Following Changes to a Company's Contribution Income

question 8

Multiple Choice

Which of the following changes to a company's contribution income statement will always lower the break-even point (either in units or in dollars) ?

• A) Sales price increases by 10%.
• B) Sales price decreases by 5%.
• C) Variable costs increase by 10% and fixed costs decrease by 5%.
• D) Variable costs decrease by 5% and fixed costs increase by 10%.

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Definitions:

Personality

The combination of characteristics or qualities that form an individual's distinctive character, influencing thoughts, feelings, and behaviors.

Intelligence

The ability to learn, understand, and apply knowledge, to reason and solve problems, and to adapt to new situations.

Weight

A measure of the mass of an object or individual, often used in a health context to discuss body mass and its implications for well-being.

Niche-picking

The process by which individuals select environments or experiences that complement their inherited tendencies or skills.