In General, an Increase in Fixed Cost While the Contribution

question 85

Multiple Choice

In general, an increase in fixed cost while the contribution margin remains unchanged will

• A) increase the break even point.
• B) decrease the break even point, but only if the safety margin is positive.
• C) either increase or decrease the break even point, depending on operation leverage.
• D) have no impact on break even point.

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Definitions:

Domestic Investment

The total investment in physical assets such as buildings and machinery within a country's borders.

Goods And Services

Physical items and intangible benefits provided to satisfy the wants and needs of consumers.

Assets Abroad

Financial holdings, investments, or physical properties located outside one's home country, potentially subject to taxation and regulation in multiple jurisdictions.

Net Capital Outflow

The difference between a country's total exports of capital and its total imports of capital over a specific period of time.