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 the sales price per unit increases while the variable cost per unit and total fixed costs remain constant, the contribution margin per unit increases because there is more revenue per unit to cover the same amount of variable costs. As a result, the break-even point decreases because the contribution margin per unit is higher and fewer units need to be sold to cover the fixed costs.

Which of the Following Statements Is TRUE If the Sales