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What Impact Would an Increase in Fixed Costs Have on the Contribution

Question 80

Multiple Choice

What impact would an increase in fixed costs have on the contribution margin, the margin of safety,
And the breakeven point?


A)
 contribution margin  margin of safety  breakeven point  Increase  No effect  Increase \begin{array} { | l | l | l | } \hline \text { contribution margin } & \text { margin of safety } & \text { breakeven point } \\\hline \text { Increase } & \text { No effect } & \text { Increase } \\\hline\end{array}
B)
 contribution margin  margin of safety  breakeven point  Decrease  Increase  Decrease \begin{array} { | l | l | l | } \hline \text { contribution margin } & \text { margin of safety } & \text { breakeven point } \\\hline \text { Decrease } & \text { Increase } & \text { Decrease } \\\hline\end{array}
C)
 contribution margin  margin of safety  breakeven point  No effect  Decrease  Increase \begin{array} { | l | l | l | } \hline \text { contribution margin } & \text { margin of safety } & \text { breakeven point } \\\hline \text { No effect } & \text { Decrease } & \text { Increase } \\\hline\end{array}
D)
 contribution margin  margin of safety  breakeven point  No effect  Increase  Decrease \begin{array} { | l | l | l | } \hline \text { contribution margin } & \text { margin of safety } & \text { breakeven point } \\\hline \text { No effect } & \text { Increase } & \text { Decrease } \\\hline\end{array}

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