Question: How might a company with a negative contribution margin reach the break-even point? Increase sales volume. Decrease sales volume. Decrease fixed costs. Decrease variable costs

  1. How might a company with a negative contribution margin reach the break-even point?
    1. Increase sales volume.
    2. Decrease sales volume.
    3. Decrease fixed costs.
    4. Decrease variable costs per unit.
    5. All of the above
  2. What happens to the contribution margin if fixed expenses decrease while variable cost per unit remain constant?
    1. Contribution margin will be higher.
    2. Contribution margin will be unchanged.
    3. Contribution margin will be lower.
    4. Cannot determine the change.

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