Question: If the fixed costs for a product decrease and the variable costs ( as a percentage of sales dollars ) decrease, what will be the
If the fixed costs for a product decrease and the variable costs as a percentage of sales dollars decrease, what will be the effect on the contribution margin ratio and the breakeven point, respectively?
Contribution Margin Ratio Breakeven Point
A Decrease Increase
B Increase Decrease
C Decrease Decrease
D Increase Increase
Multiple Choice
Option A
Option B
Option C
Option D
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