If employees accept a wage contract that increases the unit contribution margin, the break-even point will decrease.

Question

Quizplus · Accepted Answer

This statement is true because a higher unit contribution margin means that each unit sold contributes more towards covering fixed costs and ultimately reaching the break-even point. Therefore, if employees accept a wage contract that increases the unit contribution margin, the break-even point will decrease.

If Employees Accept a Wage Contract That Increases the Unit