Question: In break-even analysis, a. an increase in contribution margin per unit without an increase total fixed costs will cause an decrease in the break-even point.
In break-even analysis,
a. an increase in contribution margin per unit without an increase total fixed costs will cause an decrease in the break-even point.
b. a decrease in selling price per unit and an increase in variable cost per unit will cause an increase in contribution margin per unit.
c. an increase in selling price per unit while variable cost per unit remains constant will cause a decrease in contribution margin per unit.
d. an increase in total fixed costs and an increase variable cost per unit will cause a decrease in the break-even point.
e. All of the above statements are true.
Step by Step Solution
There are 3 Steps involved in it
1 Expert Approved Answer
Step: 1 Unlock
Question Has Been Solved by an Expert!
Get step-by-step solutions from verified subject matter experts
Step: 2 Unlock
Step: 3 Unlock
