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

Question

Quizplus · Accepted Answer

If the variable cost per unit increases while the sales price per unit and total fixed costs remain constant, the breakeven point will increase. This is because the contribution margin per unit will decrease, causing more units to be sold in order to cover the same amount of fixed costs. As a result, the breakeven point, which is the number of units that need to be sold in order to cover all costs, will increase.

Which of the Following Statements Is True If the Variable