In general,an increase in fixed cost while the contribution margin remains unchanged will:

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Quizplus · Accepted Answer

Fixed costs are costs that remain constant regardless of the production volume, while contribution margin is the amount by which sales exceed variable costs. Therefore, an increase in fixed costs will increase the break-even point, which is the point at which total revenue equals total costs. The break-even point is calculated as Fixed Costs/Contribution Margin, thus an increase in fixed costs increases the breakeven point.

In General,an Increase in Fixed Cost While the Contribution Margin