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

Question

Quizplus · Accepted Answer

A decrease in total fixed costs will result in a lower breakeven point, as less revenue needs to be generated to cover these costs. The contribution margin, which is the sales price per unit minus variable cost per unit, remains constant in this situation.

Which of the Following Statements Is True If Total Fixed