Which of the following statements is CORRECT if the variable cost per unit increases while the sale price per unit and total fixed costs remain constant?

Name: Which of the following statements is CORRECT if the variable cost per unit increases while the sale price per unit and total fixed costs remain constant?
Brand: Quizplus
Rating: 4.7 (46 reviews)

Question

Quizplus · Accepted Answer

When the variable cost per unit increases, the contribution margin per unit decreases, leading to an increase in the breakeven point since more units need to be sold to cover the fixed costs.

Which of the Following Statements Is CORRECT If the Variable