Question: When using CVP to analyze the effect of an increase to variable costs per unit only, which of the following statements are true? Select ALL

When using CVP to analyze the effect of an increase to variable costs per unit only, which of the following statements are true? Select ALL that apply.

1) Break even point will increase.

2) Contribution margin per unit will increase.

3) Risk of making profit will increase because margin of safety will decrease.

4) Total contribution margin will increase.

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!