Multiple choice questions:

1) When the total fixed costs decreases, the contribution margin per unit:

A) Increases.

B) Decreases.

C) Remains the same.

D) Decreases proportionately.

2) When the total fixed costs decreases, the breakeven point:

A) Increases.

B) Decreases.

C) Remains the same.

D) Increases proportionately.

3) When the selling price per unit decreases, the breakeven point:

A) Increases.

B) Decreases.

C) Remains the same.

D) Decreases proportionately.

4) When the selling price per unit decreases, the contribution margin per unit:

A) Increases proportionately.

B) Increases.

C) Remains the same.

D) Decreases.

5) Which of the following statements is true if the variable cost per unit increases while the sale price per unit and total fixed costs remain constant?

A) The breakeven point decreases.

B) The contribution margin increases.

C) The breakeven point remains the same.

D) The breakeven point increases.

6) Which of the following statements is true if total fixed costs decreases while the sales price per unit and variable costs per unit remain constant?

A) The contribution margin increases.

B) The breakeven point increases.

C) The contribution margin decreases.

D) The breakeven point decreases.