Question: If both the fixed and variable expenses associated with a product decrease, what will be the effect on the contribution margin ratio and the break-even

If both the fixed and variable expenses associated with a product

If both the fixed and variable expenses associated with a product decrease, what will be the effect on the contribution margin ratio and the break-even point? Contribution margin ratio, Break-even point? increase, increase decrease, increase increase, decrease decrease, decrease An important assumption of CVP analysis, is that total revenue is constant total cost can be described by a straight line (linear) fixed costs will change as volume increases selling prices must fall in order to generate more revenue

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