Question: What effect would a decrease in wage rates (applicable to direct, strictly variable, labor) have on the break-even point and the contribution margin? Break-even Point

What effect would a decrease in wage rates (applicable to direct, strictly variable, labor) have on the break-even point and the contribution margin?

Break-even Point Contribution Margin

A.

Decrease Increase
B.

Increase Increase
C.

Decrease Decrease
D.

Increase Decrease

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