If a company sells a single product and the selling price per unit and the variable cost per unit both increase by 5% while fixed costs remain the same, then
A) Contribution margin per unit increases and breakeven in units increases.
B) Contribution margin per unit increases and breakeven in units decreases.
C) Contribution margin remains the same and breakeven in units increases.
D) Contribution margin decreases and breakeven in units decreases.
Correct Answer:
Verified
Q2: To adhere to the sales mix ratio,
Q17: Changing a company's cost structure affects its
Q26: Whereas cost-plus pricing starts with the cost,
Q27: At the breakeven point, which of the
Q27: Assume a sales price per unit of
Q29: Assume a sales price per unit of
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents