In general, an increase in fixed cost while the contribution margin remains unchanged will

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Quizplus · Accepted Answer

Fixed costs are costs that do not change with the level of output or sales. Therefore, an increase in fixed cost means that the company will need to sell more units in order to cover the additional fixed cost. This means that the break-even point, which is the point at which the company covers its total costs and starts earning a profit, will increase.

In General, an Increase in Fixed Cost While the Contribution