Suppose Variable Expenses Were to Decrease by $3

question 47

Multiple Choice

Suppose variable expenses were to decrease by $3.00 per unit. What effect would this have on the cost volume profit analysis?

• A) The unit contribution margin would rise by $3.00.
• B) The break-even point in units would increase.
• C) The break-even point in units would decrease.
• D) The unit contribution margin would rise by $3.00 AND the break-even point in units would decrease.

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