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

Question

Quizplus · Accepted Answer

When sales price per unit increases while variable cost per unit and total fixed costs remain constant, the contribution margin per unit increases. This means that for each unit sold, there is more money available to cover the fixed costs and contribute towards profit. Consequently, the breakeven point decreases because it takes fewer units to cover the fixed costs and start earning a profit.

Which of the Following Statements Is TRUE If the Sales