Question: Which of the following is true? A decrease in fixed costs will increase the breakeven point in units. Fixed costs divided by the contribution margin
Which of the following is true? A decrease in fixed costs will increase the breakeven point in units. Fixed costs divided by the contribution margin ratio equals the breakeven point in sales dollars. Contribution margin divided by fixed costs equals the breakeven point in unit sales. Breakeven represents the sales level at which the companys contribution margin is $0.
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