If the Fixed Costs for a Product Increase and the Variable

question 97

Multiple Choice

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

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

---

Definitions:

Court Precedent

A legal decision made by a court that serves as an example or rule to be followed in future similar cases.

Insurance

A financial agreement where individuals or entities receive protection or reimbursement against losses from an insurer, in exchange for premium payments.

Exculpatory Clause

A contract term that releases one party from liability for harm or damage that might occur to another party, often found in service agreements and waivers.

Insane Person

Refers to an individual with severe mental illness to the point where they cannot understand the nature or consequences of their actions.