Question: If the variable cost per unit goes down, a.Contribution margin increases and Break-even point decreases. b.Fixed cost increases and Break-even point increases. c.Contribution margin decreases

If the variable cost per unit goes down,

a.Contribution margin increases and Break-even point decreases.

b.Fixed cost increases and Break-even point increases.

c.Contribution margin decreases and Break-even point increases.

d.Total variable cost increases and Break-even point decreases.

e.Contribution margin and Break-even point remains unchanged.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!