Question: If the fixed expenses of a product increase while variable expenses and the selling price remain constant, what will happen to the total contribution margin
If the fixed expenses of a product increase while variable expenses and the selling price remain constant, what will happen to the total contribution margin and the break-even point?
Contribution margin | Break-even point | |
A. | Increase | Decrease |
B. | Decrease | Increase |
C. | Unchanged | Increase |
D. | Unchanged | Unchanged |
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