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

Question

Quizplus · Accepted Answer

When total fixed costs decrease while the sale price per unit and variable costs per unit remain constant, the break-even point in units decreases. This is because the break-even point is calculated as fixed costs divided by the contribution margin per unit. With lower fixed costs, fewer units need to be sold to cover those costs.

Which of the Following Statements Is TRUE If Total Fixed