If a companys total fixed cost decreases by $10,000, which of the following will be true? a.

Question:

If a company’s total fixed cost decreases by $10,000, which of the following will be true?
a. The break-even point will increase.
b. The variable cost ratio will increase.
c. The break-even point will be unchanged.
d. The variable cost ratio will be unchanged.
e. The contribution margin ratio will increase.

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