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:

Unique Product

A product that offers a distinct set of qualities or features not possessed by similar products in the market, providing a competitive advantage.

Purchasing Product

The act of acquiring goods or services by customers in exchange for money, reflecting consumer behavior and market demand.

Benefit

An advantage, improvement, or gain that is obtained from something.