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?

Question

Quizplus · Accepted Answer

When the variable cost per unit increases while the sale price per unit and total fixed costs remain constant, the contribution margin per unit decreases as a result of which the breakeven point increases. This means that the company needs to sell more units to cover the increased variable costs and break even. Therefore, the correct option is D.

Which of the Following Statements Is CORRECT If the Variable