Question: When the total fixed costs decreases, the contribution margin per unit _ _ _ _ _ _ _ _ . Group of answer choices increases

When the total fixed costs decreases, the contribution margin per unit ________.
Group of answer choices
increases
decreases proportionately
decreases
remains the same

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!

Q:

Multiple choice questions: 1) When the total fixed costs decreases, the contribution margin per unit: A) Increases. B) Decreases. C) Remains the same. D) Decreases proportionately. 2) When the total...

Q:

When the total fixed costs increases, the contribution margin per unit q , decreases increases increases proportionately remains the same When the total fixed costs increases, the contribution margin...

Q:

When the total fixed costs decreases, the contribution margin per unit ________. a. increases b. decreases c. increases proportionately d. remains the same

Q:

When the total fixed costs decreases, the contribution margin per unit_ O a. increases b. decreases c. remains the same O d. decreases proportionately

Q:

When the total fixed costs increases, the contribution margin per unit ________. A.increases B. decreases C. increases proportionately D. remains the same

Q:

20 When the total fixed costs increases, the contribution margin per unit increases decreases increases proportionately remains the same 20 When the total fixed costs increases, the contribution...

Q:

When the total fixed costs increases, the contribution margin per unit ________. increases decreases increases proportionately remains the same

Q:

please answer 3. The strategy MOST LIKELY to reduce the break-even point would be to: a. Increase both the capacity-related (fixed) costs and the contribution margin per unit. b. Decrease both the...

Q:

Requirement 2. Compare the impact of changes in the sales price, variable costs, and fixed costs on the contribution margin per unit and the breakeven point in units. First, compare the impact of...

Q:

1.At a volume of 3,000 units, Rudy Inc. reported the following: Sales $2,400,000 Variable Costs $900,000 Fixed Costs $650,000 Compute contribution margin per unit: 2. At a volume of 3,000 units, Rudy...

Q:

t 0 20 40 60 80 100 120 140 160 180 200 220 240 260 280 300 320 340 360 x 0 3.05 2.04 0.34 0.63 0.95 1.60 2.27 1.60 0.44 0.75 1.13 1.82 2.20 0.56 0.54 0.86 1.32 2.18 y 1 0.28 0.18 0.32 0.38 0.46 0.35...

Q:

The Toy Factory owns two warehouses in Auckland. One building is located in West Auckland and the other building is located in the North Shore. The two buildings are used to store finished goods...

Q:

An auditor is employing substantive analytical procedures to determine appropriateness of sales and accounts receivable balances. While performing these procedures, the auditor found variances...

Q:

A company issues 1,050 shares of its common stock for $33,600 cash. Prepare journal entries to record this event under each of the following separate situations.