If total fixed costs decrease while the selling price per unit and variable costs per unit remain constant, which of the following statements is true?

Name: If total fixed costs decrease while the selling price per unit and variable costs per unit remain constant, which of the following statements is true?
Brand: Quizplus
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Question

Quizplus · Accepted Answer

The breakeven point in units decreases because the total amount of fixed costs that need to be covered by the contribution margin is lower, meaning fewer units need to be sold to cover those costs.

If Total Fixed Costs Decrease While the Selling Price Per