If the contribution margin per unit increases,what is the effect on the break-even point? (Assume no other changes.)
A) The break-even point increases.
B) The break-even point decreases.
C) The break-even point remains the same.
D) The break-even point will be zero.

Question

Quizplus · Accepted Answer

When the contribution margin per unit increases, it means that each unit sold contributes more towards covering the fixed costs and generating profit. Therefore, the break-even point decreases because fewer units need to be sold to cover the fixed costs and reach the break-even point.

If the Contribution Margin Per Unit Increases,what Is the Effect